resource-rich countries, the decision of host governments to expropriate these investments, and the level of corruption. Higher … production. Moreover, resource production leads to high levels of corruption. Our theoretical results are confirmed by … estimations of a simultaneous equation model for 50 resource-rich countries in which we endogenize expropriation risk, corruption …

corruption-friendly setting caused by a weak institutional framework. We argue that corrupt elites exploit this given … corruption. …

effect is strengthened in countries with lower level of public sector corruption and better functioning legal systems …