Oil Rents, Corruption, and State Stability: Evidence from Panel Data Regressions
AbstractWe examine the effects of oil rents on corruption and state stability exploiting the exogenous within-country variation of a new measure of oil rents for a panel of 30 oil-exporting countries during the period 1992 to 2005. We find that an increase in oil rents significantly increases corruption, significantly deteriorates political rights while at the same time leading to a significant improvement in civil liberties. We argue that these findings can be explained by the political elite having an incentive to extend civil liberties but reduce political rights in the presence of oil windfalls to evade redistribution and conflict. We support our argument documenting that there is a significant effect of oil rents on corruption in countries with a high share of state participation in oil production while no such link exists in countries where state participation in oil production is low.
Download InfoIf 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.
Bibliographic InfoPaper provided by University of Adelaide, School of Economics in its series School of Economics Working Papers with number 2011-07.
Length: 26 pages
Date of creation: Jan 2011
Date of revision:
oil rents; corruption; state stability; state participation;
Other versions of this item:
- Arezki, Rabah & Brückner, Markus, 2011. "Oil rents, corruption, and state stability: Evidence from panel data regressions," European Economic Review, Elsevier, vol. 55(7), pages 955-963.
- International Monetary Fund, 2009. "Oil Rents, Corruption, and State Stability: Evidence From Panel Data Regressions," IMF Working Papers 09/267, International Monetary Fund.
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
- D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-01-23 (All new papers)
- NEP-ARA-2011-01-23 (MENA - Middle East & North Africa)
- NEP-CWA-2011-01-23 (Central & Western Asia)
- NEP-ENE-2011-01-23 (Energy Economics)
- NEP-POL-2011-01-23 (Positive Political Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Frederick Van der Ploeg, 2010.
"Natural Resources: Curse or Blessing?,"
CESifo Working Paper Series
3125, CESifo Group Munich.
- Mougani Gabriel, 2012. "Working Paper 144 - An Analysis of the Impact of Financial Integration on Economic Activity and Macroeconomic Volatility in Africa within the Financial Globalization Context," Working Paper Series 375, African Development Bank.
- Frankel, Jeffrey, 2010.
"The Natural Resource Curse: A Survey,"
Working Paper Series
rwp10-005, Harvard University, John F. Kennedy School of Government.
- Rabah Arezki & Thorvaldur Gylfason, 2011. "Resource Rents, Democracy and Corruption: Evidence from Sub-Saharan Africa," CESifo Working Paper Series 3575, CESifo Group Munich.
- Andreas Buehn & Mohammad Reza Farzanegan, 2013. "Impact of education on the shadow economy: Institutions matter," Economics Bulletin, AccessEcon, vol. 33(3), pages 2052-2063.
- Yin‐Wong Cheung & Jakob de Haan & Xingwang Qian & Shu Yu, 2012.
"China's Outward Direct Investment in Africa,"
Review of International Economics,
Wiley Blackwell, vol. 20(2), pages 201-220, 05.
- Tim Wegenast, 2013. "The Impact of Fuel Ownership on Intrastate Violence," GIGA Working Paper Series 225, GIGA German Institute of Global and Area Studies.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dmitriy Kvasov).
If references are entirely missing, you can add them using this form.