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Oil, Nontax Revenue, and the Redistributional Foundations of Regime Stability

  • Morrison, Kevin M.
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    Nontax revenues make up a substantial amount of government revenue around the world, though scholars usually focus on individual sources of such revenue (for example, foreign aid and state-owned oil companies). Using a theory of regime change that builds on recent models of the redistributional foundations of dictatorships and democracies, I generate hypotheses regarding all nontax revenue and regime stability. I argue that an increase in nontax revenue should be associated with less taxation of elites in democracies, more social spending in dictatorships, and more stability for both regime types. I find support for all three of these hypotheses in a cross-sectional time-series analysis, covering all countries and years for which the necessary data are available. Significantly, I show that the particular source of nontax revenue does not make a difference: they all act similarly with regard to regime stability and the causal mechanisms.

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    File URL: http://journals.cambridge.org/abstract_S0020818309090043
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    Article provided by Cambridge University Press in its journal International Organization.

    Volume (Year): 63 (2009)
    Issue (Month): 01 (January)
    Pages: 107-138

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    Handle: RePEc:cup:intorg:v:63:y:2009:i:01:p:107-138_09
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