More Oil, Less Democracy: Evidence from Worldwide Crude Oil Discoveries
In: The economic journal: the journal of the Royal Economic Society, Band 121, Heft 551, S. 89-115
ISSN: 1468-0297
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In: The economic journal: the journal of the Royal Economic Society, Band 121, Heft 551, S. 89-115
ISSN: 1468-0297
In: Economics & politics, Band 22, Heft 3, S. 471-497
ISSN: 1468-0343
A simple model of political entry in a two‐sector economy is developed to analyze the effects of natural resource wealth on economic policy, political development, and civil insurrection. The model emphasizes the role of political entry and deadweight costs of taxation on the joint determination of these economic and political outcomes. Contrary to popular belief, my model shows that natural resource abundance is an economic blessing even in a rent‐seeking society, although resource dependence can be negatively associated with economic performance. In a contested political market, dictators care about popular support and hence resource wealth can help reduce the deadweight cost of taxation (and hence the cost of public good provision). On the other hand, natural resource wealth can be a political curse, because it encourages political entry and hence it induces incumbent dictators to run more repressive regimes. With constant returns counterinsurgent technology, however, the equilibrium number of insurgents is independent of the size of resource wealth. The onset of civil war, therefore, depends on the counterinsurgent technology and whether the costs of entry deterrence are affected by resource wealth. This helps clarify the two seemingly contradictory hypotheses that "resource wealth enhances regime durability" and "resource wealth fuels conflict."
In: Economics & politics, Band 22, Heft 3, S. 471-498
ISSN: 0954-1985
In: Economic Journal, Forthcoming
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In: Economics and Politics, Forthcoming
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In: Hong Kong Institute for Monetary and Financial Research (HKIMR) Research Paper WP No. 17/2012
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In: NBER Working Paper No. w22305
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In: Research in economics: Ricerche economiche, Band 69, Heft 3, S. 377-397
ISSN: 1090-9451
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In: NBER Working Paper No. w13830
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In: Centro Studi Luca d'Agliano Development Studies Working Paper No. 342
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In: Hong Kong Institute for Monetary and Financial Research (HKIMR) Research Paper WP No. 32/2011
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