Foreign Investment and Political Regimes: The Oil Sector in Azerbaijan, Russia, and Norway

Half-title......Page 3
Title......Page 5
Copyright......Page 6
Contents......Page 9
List of Figures and Tables......Page 11
Acknowledgments......Page 13
1 Introduction......Page 17
Case Selection......Page 22
Research Methodology......Page 25
Significance and Implications......Page 26
Organization of the Book......Page 29
2 Political Risks in Oil Investments: a History of Antagonistic Interdependence Between Companies and Host-Governments......Page 32
Obsolescing Bargain and Political Risk......Page 33
Traditional Concessions......Page 38
“The Awakening"......Page 40
Modern Oil Agreements......Page 43
A Comparison of Investment Environments in Azerbaijan, Russia, and Norway......Page 50
Conclusion......Page 54
3 With or Without Democracy? The Political Economy of Foreign Direct Investments......Page 57
Democracy and FDI......Page 61
Executive Constraints and Political Competition......Page 65
High Executive Constraints and Political Competition......Page 68
Low Executive Constraints and Political Competition......Page 70
Trade-offs Between Democracies and Authoritarian Regimes......Page 72
Partial Executive Constraints and Political Competition......Page 74
Can Structural Factors Explain the Attractiveness of Investment Policies?......Page 76
A Comparison of Political Regimes in Azerbaijan, Russia, and Norway......Page 84
Conclusion......Page 87
4 Curse or Blessing? Effects of FDI on Development......Page 88
FDI as a Catalyst for Development......Page 89
FDI as an Obstacle to Development......Page 90
FDI in Oil......Page 92
Oil Dependence and the Economy: Dutch Disease and Resource Curse......Page 93
Oil Dependence and State Capacity: The Rentier State......Page 94
Oil Dependence and Conflict: Petro-Violence and Social Unrest......Page 95
Oil Dependence and Political Regime: Authoritarian Curse......Page 96
Prior Political Institutions......Page 97
A Comparison of Azerbaijan, Norway, and Russia......Page 99
Conclusion......Page 101
5 Azerbaijan: One-Stop Shopping......Page 103
The Nineteenth Century......Page 106
The Soviet Period......Page 107
Oil in a New State......Page 108
Aliev's Investment Policy......Page 110
Unconstrained Executive......Page 113
Restricted Competition......Page 116
Politics of Oil Investment Policy......Page 120
Distortion in the Economy: Dutch Disease......Page 124
Weak Governance, Corruption, Inequality......Page 126
AntiDemocratic Tendencies......Page 130
Trade-offs Facing Investors......Page 135
Conclusion......Page 136
6 Russia: Two Steps Forward, One Step Back......Page 138
The Soviet Period......Page 141
Oil Investment Policy of the New Russian State-Early 1990s......Page 143
The Evolution of the PSA Regime: "Progress Stalled Again"......Page 147
Russia's Political Regime......Page 156
Some executive constraints......Page 157
Weakly Institutionalized, Limited Competition......Page 160
Struggle between the Executive and Legislative Branches......Page 162
Struggle Between the Center and the Subjects of the Federation......Page 164
Struggle Within the Bureaucracy......Page 168
Struggle Among Political Parties and Interest Groups......Page 169
Importance of Economic Crises and Personalities......Page 176
Early 2000s: Unconstrained Executive and Improved Investment Environment......Page 178
Mid 2000s: High Oil Prices, Energy Statism and Energy Nationalism......Page 181
Russia-an Outlier?......Page 189
Russia becoming the Norm......Page 193
Conclusion......Page 196
7 Norway: Icon of Stability......Page 199
The Initial Phase: The 1960s......Page 201
The "Norwegianization" of Oil: The 1970s......Page 203
The Late 1980s......Page 207
Overall Characteristics of the Investment Environment......Page 208
Constrained Executive......Page 212
Institutionalized, Open Competition......Page 214
Politics of Oil Investment Policy......Page 216
Implication of Oil FDI on Development......Page 223
The Norwegian Exceptionalism......Page 224
Conclusion......Page 230
8 Beyond Three Cases and Oil......Page 232
Kazakhstan's Oil Investment Policy......Page 233
Politics and Oil FDI in Kazakhstan......Page 235
Beyond Case studies and Oil......Page 241
Model and Results......Page 243
Robustness Checks......Page 247
9 Conclusion......Page 252
FDI: Good or Bad?......Page 254
References......Page 259
Index......Page 281