THE DEMISE OF EXPROPRIATION AS AN INSTRUMENT OF LDC POLICY, 1980-1992

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.