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Natural resource rents, autocracy and the composition of government spending

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  • Morten Endrikat

    (RWTH Aachen University)

Abstract

This paper empirically analyzes the influence of rents from natural resources on the composition of government spending and investigates whether the relationship differs between democracies and autocracies. Both panel data and instrumental variable regressions suggest that there is a negative joint effect of autocracy and natural resource dependency on education spending. Moreover, there is slight evidence in the results of a positive joint effect on spending for social protection, while other components of government spending do not seem to be influenced. In particular, the results do not suggest that autocratic regimes in resource-dependent countries spend relatively more on military.

Suggested Citation

  • Morten Endrikat, 2017. "Natural resource rents, autocracy and the composition of government spending," MAGKS Papers on Economics 201727, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    • Handle: RePEc:mar:magkse:201727
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    More about this item

    Keywords

    Natural Resources; resource curse; institutions; government spending;
    All these keywords.

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)

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