Advanced Search
MyIDEAS: Login to save this article or follow this journal

Is Natural Resource Wealth Compatible with Good Governance?

Contents:

Author Info

  • Shahnawaz Sheikh

    (Monterey Institute)

  • Nugent Jeffery B

    (U. of Southern California)

Registered author(s):

    Abstract

    This paper analyzes the effects of natural resource wealth on the economic and political environment of a country. A dynamic game-theoretic model is used to highlight the policy choice of the government vis-a`-vis the opposition. The government utilizes both economic and other policy tools to further its own interests. These policies include repression, co-option of the opposition (by way of sharing the natural resource wealth), taxation, the level of commitment to expanding the resource base through further exploration, and extraction of existing resources. The opposition is in the private sector and chooses how much of its wealth to save and invest and on whether or not to accept what is offered to it by the government and, if not, to start a civil war. In contrast to other political economy models that involve such phenomena as repression and civil wars and which view the political game as one between the government and the marginalized peasantry, this model views the game as between the government and another e´ lite group. The model is used to explain several quite different political outcomes observed in countries endowed with natural resources. These include repressive regimes, democratic regimes, benevolent autocracies/' sham democracies’, instability and civil war. The analysis shows how these outcomes depend on technology driving the process that converts income into consumption, the likelihood of finding additional natural resource wealth through exploration, the size of the private sector and other factors. The model is also illustrated empirically by comparing the governance and other characteristics of countries with different levels of natural resource wealth.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.degruyter.com/view/j/rmeef.2004.2.3/rmeef.2004.2.3.1027/rmeef.2004.2.3.1027.xml?format=INT
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by De Gruyter in its journal Review of Middle East Economics and Finance.

    Volume (Year): 2 (2004)
    Issue (Month): 3 (December)
    Pages: 1-33

    as in new window
    Handle: RePEc:bpj:rmeecf:v:2:y:2004:i:3:n:1

    Contact details of provider:
    Web page: http://www.degruyter.com

    Order Information:
    Web: http://www.degruyter.com/view/j/rmeef

    Related research

    Keywords:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Hassan Gholipour Fereidouni & Tajul Ariffin Masron & Reza Ekhtiari Amiri, 2011. "The effects of FDI on voice and accountability in the MENA region," International Journal of Social Economics, Emerald Group Publishing, vol. 38(9), pages 802-815, August.
    2. Atsushi Iimi, 2006. "Did Botswana Escape From the Resource Curse?," IMF Working Papers 06/138, International Monetary Fund.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:bpj:rmeecf:v:2:y:2004:i:3:n:1. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Golla).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.