Abstract
Theories from several disciplines are integrated into a general model for the prediction of a national propensity to expropriate foreign private direct investments in less-developed host countries. A discriminant analysis is used to test the hypothesis that the presence of such instability combined with a high level of foreign (American) investments will result in a high propensity to expropriate. The model is tested empirically on Latin American data from the 1968–71 period, and the main hypothesis confirmed.
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*Harald Knudsen received his Ph.D. from the University of Oregon, Graduate School of Management and Business in 1972. He has been an Assistant Professor at the Norwegian School of Economics and Business Administration, and is presently a Research Associate in the Department of Sociology at the University of Bergen. Norway. This article is based on a Ph.D. dissertation Expropriation of Foreign Private Investments in Latin America. The dissertation was a runner-up in the annual dissertation competition of the Academy of International Business, 1972.
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Knudsen, H. Explaining the National Propensity to Expropriate: An Ecological Approach. J Int Bus Stud 5, 51–71 (1974). https://doi.org/10.1057/palgrave.jibs.8490812
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DOI: https://doi.org/10.1057/palgrave.jibs.8490812