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The Demise of Expropriation as an Instrument of LDC Policy 1980–1992

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This paper reports data collected on expropriation activity by developing countries from 1980–1992, extending previous work by Kobrin [1984]. Kobrin's assumption that expropriation activity would continue to decrease over time, and his reasons for this assumption, are supported. The paper introduces recent phenomena which further indicate that expropriation is unlikely to resurface in the near future as a source of multinational corporation-developing country contention. Many developing countries now protect foreign direct investors from expropriation. The broad-scale movement in developing countries to privatize state-owned enterprises also indicates that governments will not be eager to replace private-sector activity with state ownership.

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*Michael S. Minor is Associate Professor of Marketing and International Business and Director of the Sam and Bea Lack Faculty Development Program at the University of Texas-Pan American. His research interests include country-of-origin effects on product preferences, country risk analysis, and international marketing strategy. He has published a monograph in the South Carolina Essays in International Business series, and has also published in the Journal of International Business Studies, International Studies of Management and Organization, Risk Analysis, Journal of Services Marketing, and elsewhere.

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Minor, M. The Demise of Expropriation as an Instrument of LDC Policy 1980–1992. J Int Bus Stud 25, 177–188 (1994).

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