Does oil corrupt? Evidence from a natural experiment in West Africa
AbstractThis paper explores the oil discovery announcements in Sao Tome and Principe (1997-1999) to assess the role of natural resources in determining corruption. For this purpose, we use a natural experiment framework which contrasts Sao Tome and Principe to Cape Verde, a control West African country sharing the same colonial past and important recent economic and political shocks. Our measurement is based on tailored household surveys we conducted in both island countries. The unique survey instrument was retrospective and used personal histories to elicit memories from the respondents. We analyze changes in perceived corruption across a wide range of public services and allocations. We find clearest increases on vote buying, education (namely in the allocation of scholarships) and customs, ranging from 31 to 40% of the subjective scale. We interpret these findings as symptoms of increased competition for core state resources.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Development Economics.
Volume (Year): 92 (2010)
Issue (Month): 1 (May)
Contact details of provider:
Web page: http://www.elsevier.com/locate/devec
Corruption Political economy Natural resources Curse Oil West Africa Sao Tome and Principe Cape Verde;
Other versions of this item:
- Pedro C. Vicente, 2007. "Does Oil Corrupt? Evidence from a Natural Experiment in West Africa," Economics Series Working Papers 317, University of Oxford, Department of Economics.
- D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa
- P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
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