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Economics

Political Economy of Resource Nationalism in Petro-States

Quick fact

Resource nationalism in petro-states often spikes when oil prices are high: governments feel empowered to demand better terms or take direct control because the perceived opportunity cost of foreign ownership is greater.

Why this is interesting

Many oil-rich countries have swung between welcoming foreign investors and kicking them out. Why do governments sometimes nationalize their own oil industry, even when it seems economically risky?