In this article, we describe some stylized facts about expropriation of Foreign Direct Investment (FDI) and develop a theory that relates direct and indirect forms of expropriation to the degree of political instability (the frequency at which groups alternate in power) and concentration of...

I examine the role of political instability as a potential explanation for the lack of capital flows from rich countries to poor countries (i.e. the `Lucas Paradox'). Using panel data from 1984 to 2014, I document the following: (i) developed countries exhibit larger inflows of foreign direct...

I analyze how partisan conflict about trade policy affects foreign direct investment flows to the US using a novel indicator, the Trade Partisan Conflict Index (TPCI). Partisan conflict is relevant for the evolution of cross-border capital flows because the expected returns on investment...

This paper documents that countries with low political turnover exhibit larger inflows of foreign direct investment. This correlation is rationalized with a model of redistribution, where policymakers have access to an expropriation technology that can be used to extract resources from foreign...