The Demographics of Expropriation Risk

Arbeitspapier

It is often argued that capital should flow from aging industrialized economies to countries with fast-growing populations. However, institutional failures and the risk of expropriation substantially reduce developing economies' attractiveness for foreign investors. We analyze the influence of a country's demographic structure on international investment, using a political-economy model in which population growth potentially affects the risk of expropriation. We first explore how redistributive expropriation affects the welfare of different age groups and derive the government's incentive to expropriate. We then analyze how the relative size of different generations influences the feasible volume of foreign investment.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 09.02

Classification and Topics

• Classification: Wirtschaft ; International Investment; Long-term Capital Movements ; Positive Analysis of Policy Formulation and Implementation ; Demographic Economics: General
• Subject: International Investment ; Political Economy ; Demographics ; Auslandsinvestition ; Bevölkerungsstruktur ; Enteignung ; Investitionsrisiko ; Wirtschaftswissenschaft ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Harms, Philipp ; an de Meulen, Philipp
• Event: Veröffentlichung
• (who): Swiss National Bank, Study Center Gerzensee
• (where): Gerzensee
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/128047
• Last update: 10.03.2025, 11:43 AM CET