IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Natural resources and sub-national economic performance: Does sub-national democracy matter?

  • Libman, Alexander
Registered author(s):

    The differentiation in the impact of resources on economic growth is often explained by the specifics of institutional factors. The aim of this paper is to investigate how sub-national political differences influence the effect of natural resources on economic growth. Using a dataset of Russian regions, this paper demonstrates that sub-national democratization influences the growth effects of resources and considers possible mechanisms for this influence. The paper finds that in Russia, natural resources are only capable of promoting growth in the regions with non-democratic political systems that, at the same time, have an efficient and non-corrupt bureaucracy.

    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.sciencedirect.com/science/article/pii/S0140988313000169
    Download Restriction: Full text for ScienceDirect subscribers only

    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.

    Article provided by Elsevier in its journal Energy Economics.

    Volume (Year): 37 (2013)
    Issue (Month): C ()
    Pages: 82-99

    as
    in new window

    Handle: RePEc:eee:eneeco:v:37:y:2013:i:c:p:82-99
    Contact details of provider: Web page: http://www.elsevier.com/locate/eneco

    References listed on IDEAS
    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.:

    as in new window
    1. Jørgen Juel Andersen & Silje Aslaksen, 2006. "Constitutions and the resource curse," Working Paper Series 7506, Department of Economics, Norwegian University of Science and Technology.
    2. Georgy Egorov & Konstantin Sonin, 2004. "Dictators and Their Viziers: Agency Problems in Dictatorships," Working Papers w0043, Center for Economic and Financial Research (CEFIR).
    3. Isaac Ehrlich & Francis T. Lui, 1999. "Bureaucratic Corruption and Endogenous Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages S270-S293, December.
    4. Berkowitz, Daniel & DeJong, David N., 2011. "Growth in post-Soviet Russia: A tale of two transitions," Journal of Economic Behavior & Organization, Elsevier, vol. 79(1), pages 133-143.
    5. Akhmed Akhmedov & Ekaterina Zhuravskaya, 2004. "Opportunistic Political Cycles: Test in a Young Democracy Setting," The Quarterly Journal of Economics, Oxford University Press, vol. 119(4), pages 1301-1338.
    6. Libman, Alexander & Kozlov, Vladimir & Schultz, André, 2012. "Roving bandits in action: Outside option and governmental predation in autocracies," Frankfurt School - Working Paper Series 190, Frankfurt School of Finance and Management.
    7. Philip R. Lane & Aaron Tornell, 1999. "The Voracity Effect," American Economic Review, American Economic Association, vol. 89(1), pages 22-46, March.
    8. Paul Collier & Benedikt Goderis, 2007. "Commodity Prices, Growth, and the Natural Resource Curse: Reconciling a Conundrum," Economics Series Working Papers WPS/2007-15, University of Oxford, Department of Economics.
    9. Antonio Cabrales & Esther Hauk, 2011. "The Quality of Political Institutions and the Curse of Natural Resources," Economic Journal, Royal Economic Society, vol. 121(551), pages 58-88, March.
    10. Francesco Caselli & Guy Michaels, 2013. "Do Oil Windfalls Improve Living Standards? Evidence from Brazil," American Economic Journal: Applied Economics, American Economic Association, vol. 5(1), pages 208-38, January.
    11. Ariane Lambert-Mogiliansky & Konstantin Sonin & Ekaterina Zhuravskaya, 2007. "Are Russian Commercial Courts Biased? Evidence from a Bankruptcy Law Transplant," Post-Print halshs-00754226, HAL.
    12. Sambit Bhattacharyya & Roland Hodler, 2010. "Do Natural Resource Revenues Hinder Financial Development?� The Role of Political Institutions," Economics Series Working Papers CSAE WPS/2010-40, University of Oxford, Department of Economics.
    13. Guy Michaels, 2011. "The Long Term Consequences of Resource‐Based Specialisation," Economic Journal, Royal Economic Society, vol. 121(551), pages 31-57, March.
    14. Vladimir Gimpelson & Rostislav Kapelyushnikov & Anna Lukyanova, 2010. "Employment Protection Legislation in Russia: Regional Enforcement and Labor Market Outcomes," Comparative Economic Studies, Palgrave Macmillan, vol. 52(4), pages 611-636, December.
    15. James A. Robinson & Ragnar Torvik & Thierry Verdier, 2003. "Politcal Foundations of the Resource Curse," DELTA Working Papers 2003-33, DELTA (Ecole normale supérieure).
    16. Sergei Guriev & Andrei Rachinsky, 2005. "The Role of Oligarchs in Russian Capitalism," Sciences Po publications info:hdl:2441/1cu21pio6c9, Sciences Po.
    17. Bulte Erwin & Damania Richard, 2008. "Resources for Sale: Corruption, Democracy and the Natural Resource Curse," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-30, February.
    18. James, Alexander G. & James, Robert G., 2011. "Do resource dependent regions grow slower than they should?," Economics Letters, Elsevier, vol. 111(3), pages 194-196, June.
    19. Feld, Lars P. & Schaltegger, Christoph A. & Schnellenbach, Jan, 2008. "On government centralization and fiscal referendums," European Economic Review, Elsevier, vol. 52(4), pages 611-645, May.
    20. Besley, Timothy J. & Kudamatsu, Masayuki, 2007. "Making Autocracy Work," CEPR Discussion Papers 6371, C.E.P.R. Discussion Papers.
    21. Bhattacharyya, Sambit & Hodler, Roland, 2010. "Natural resources, democracy and corruption," European Economic Review, Elsevier, vol. 54(4), pages 608-621, May.
    22. World Bank & International Finance Corporation, . "Doing Business in Russia 2012," World Bank Other Operational Studies 12201, The World Bank.
    23. Olivier Blanchard & Andrei Shleifer, 2000. "Federalism with and without Political Centralization: China versus Russia," NBER Working Papers 7616, National Bureau of Economic Research, Inc.
    24. Akhmed Akhmedov & Ekaterina Zhuravskaya, 2004. "Opportunistic Political Cycles: Test in a Young Democracy Setting," Economics Working Papers 0047, Institute for Advanced Study, School of Social Science.
    25. L. Polishchuk, 2009. "Corporate Social Responsibility or Government Regulation: An Analysis of Institutional Choice," Problems of Economic Transition, M.E. Sharpe, Inc., vol. 52(8), pages 73-94, December.
    26. Halvor Mehlum & Karl Moene & Ragnar Torvik, 2006. "Institutions and the Resource Curse," Economic Journal, Royal Economic Society, vol. 116(508), pages 1-20, 01.
    27. Rivera-Batiz, Francisco L, 2002. "Democracy, Governance, and Economic Growth: Theory and Evidence," Review of Development Economics, Wiley Blackwell, vol. 6(2), pages 225-47, June.
    28. Khurram Jamali & Kirsten Wandschneider & Phanindra Wunnava, 2007. "The effect of political regimes and technology on economic growth," Applied Economics, Taylor & Francis Journals, vol. 39(11), pages 1425-1432.
    29. Dixit Avinash K, 2010. "Democracy, Autocracy and Bureaucracy," Journal of Globalization and Development, De Gruyter, vol. 1(1), pages 1-47, January.
    30. Locatelli, Catherine & Rossiaud, Sylvain, 2011. "A neoinstitutionalist interpretation of the changes in the Russian oil model," Energy Policy, Elsevier, vol. 39(9), pages 5588-5597, September.
    31. Alexander Libman, 2012. "Democracy, size of bureaucracy, and economic growth: evidence from Russian regions," Empirical Economics, Springer, vol. 43(3), pages 1321-1352, December.
    32. Deacon, Robert T., 2011. "The Political Economy of the Natural Resource Curse: A Survey of Theory and Evidence," Foundations and Trends(R) in Microeconomics, now publishers, vol. 7(2), pages 111-208, December.
    33. Sonin, Konstantin, 2003. "Why the rich may favor poor protection of property rights," Journal of Comparative Economics, Elsevier, vol. 31(4), pages 715-731, December.
    34. Gehlbach, Scott & Keefer, Philip, 2011. "Investment without democracy: Ruling-party institutionalization and credible commitment in autocracies," Journal of Comparative Economics, Elsevier, vol. 39(2), pages 123-139, June.
    35. Anne D. Boschini & Jan Pettersson & Jesper Roine, 2007. "Resource Curse or Not: A Question of Appropriability," Scandinavian Journal of Economics, Wiley Blackwell, vol. 109(3), pages 593-617, 09.
    36. Guriev, Sergei & Yakovlev, Evgeny & Zhuravskaya, Ekaterina, 2008. "Interest Group Politics in a Federation," CEPR Discussion Papers 6671, C.E.P.R. Discussion Papers.
    37. Christa N. Brunnschweiler, 2006. "Cursing the blessings? Natural resource abundance, institutions, and economic growth," CER-ETH Economics working paper series 06/51, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    38. Andrey S. Makarychev, 2000. "Russian Financial-Industrial Groups and the Regions: Toward New Patterns of Horizontal Networking," International Journal of Political Economy, M.E. Sharpe, Inc., vol. 30(3), pages 44-57, October.
    39. Bruno, Randolph & Bytchkova, Maria & Estrin, Saul, 2011. "Institutions And Entry: A Cross-Regional Analysis In Russia," CEPR Discussion Papers 8283, C.E.P.R. Discussion Papers.
    40. Brückner, Markus, 2010. "Natural resource dependence, non-tradables, and economic growth," Journal of Comparative Economics, Elsevier, vol. 38(4), pages 461-471, December.
    41. Irina Slinko & Evgeny Yakovlev & Ekaterina Zhuravskaya, 2004. "Laws for Sale: Evidence from Russia," Economics Working Papers 0046, Institute for Advanced Study, School of Social Science.
    42. Collier, Paul & Hoeffler, Anke, 2009. "Testing the neocon agenda: Democracy in resource-rich societies," European Economic Review, Elsevier, vol. 53(3), pages 293-308, April.
    43. repec:wbk:wboper:12202 is not listed on IDEAS
    44. Christa N. Brunnschweiler & Erwin H. Bulte, 2006. "The Resource Curse Revisited and Revised: A Tale of Paradoxes and Red Herrings," CER-ETH Economics working paper series 06/61, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    45. Jorge Martinez-Vazquez & Jameson Boex, 1999. "Fiscal Decentralization in the Russian Federation During the Transition," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper9903, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    46. Catherine Norman, 2009. "Rule of Law and the Resource Curse: Abundance Versus Intensity," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 43(2), pages 183-207, June.
    47. Rick van der Ploeg & Steven Poelhekke, 2010. "The Pungent Smell of 'Red Herrings': subsoil assets, rents, volatility and the resource curse," OxCarre Working Papers 033, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
    48. Vadim Radaev, 2013. "Where Does the Demand for Regulation Come From? The State’s Return to the Retail Trade in Russia," HSE Working papers WP BRP 02/SOC/2013, National Research University Higher School of Economics.
    49. Jorge Martinez-Vazquez & Andrey Timofeev, 2006. "Regional-Local Dimension of Russia's Fiscal Equalization," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0616, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    50. Daniel Treisman, 2010. "Oil and Democracy in Russia," NBER Working Papers 15667, National Bureau of Economic Research, Inc.
    51. Jorge Martinez-Vazquez & Andrey Timofeev, 2010. "Intra-Regional Equalization & Growth in Russia," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1011, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    52. Elena Jarocinska, 2008. "Are Intergovernmental Grants Tactical? The Evidence from Russia," CASE Network Studies and Analyses 0361, CASE-Center for Social and Economic Research.
    53. Papyrakis, Elissaios & Gerlagh, Reyer, 2007. "Resource abundance and economic growth in the United States," European Economic Review, Elsevier, vol. 51(4), pages 1011-1039, May.
    54. Adam Przeworski & Fernando Limongi, 1993. "Political Regimes and Economic Growth," Journal of Economic Perspectives, American Economic Association, vol. 7(3), pages 51-69, Summer.
    55. James, Alex & Aadland, David, 2011. "The curse of natural resources: An empirical investigation of U.S. counties," Resource and Energy Economics, Elsevier, vol. 33(2), pages 440-453, May.
    56. Desai, Raj M. & Freinkman, Lev & Goldberg, Itzhak, 2005. "Fiscal federalism in rentier regions: Evidence from Russia," Journal of Comparative Economics, Elsevier, vol. 33(4), pages 814-834, December.
    57. Thornton Matheson, 2005. "Does fiscal redistribution discourage local public investment?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 13(1), pages 139-162, 01.
    58. Zhuravskaya Ekatherina, 2000. "Incentives to Provide Local Public Goods: Fiscal Federalism, Russian Style," EERC Working Paper Series 99-15e, EERC Research Network, Russia and CIS.
    59. Daniel Berkowitz, 2010. "The Emergence of Bank-Issued Credit in Russia: An Empirical Characterization," Working Papers 389, University of Pittsburgh, Department of Economics, revised Mar 2010.
    60. Marchand, Joseph, 2012. "Local labor market impacts of energy boom-bust-boom in Western Canada," Journal of Urban Economics, Elsevier, vol. 71(1), pages 165-174.
    61. Ivar Kolstad, 2009. "The resource curse: which institutions matter?," Applied Economics Letters, Taylor & Francis Journals, vol. 16(4), pages 439-442.
    62. repec:ebd:wpaper:125 is not listed on IDEAS
    63. Michael Alexeev & Robert Conrad, 2009. "The Elusive Curse of Oil," The Review of Economics and Statistics, MIT Press, vol. 91(3), pages 586-598, August.
    64. Vladimir Mau & Konstantin Yanovskiy, 2002. "Political and Legal Factors of Economic Growth in Russian Regions," Post-Communist Economies, Taylor & Francis Journals, vol. 14(3), pages 321-339.
    65. Daron Acemoglu, 2006. "A Simple Model of Inefficient Institutions," Scandinavian Journal of Economics, Wiley Blackwell, vol. 108(4), pages 515-546, December.
    66. Alexeev, Michael & Kurlyandskaya, Galina, 2003. "Fiscal federalism and incentives in a Russian region," Journal of Comparative Economics, Elsevier, vol. 31(1), pages 20-33, March.
    67. Granville, Brigitte & Leonard, Carol S., 2010. "Do Informal Institutions Matter for Technological Change in Russia? The Impact of Communist Norms and Conventions, 1998-2004," World Development, Elsevier, vol. 38(2), pages 155-169, February.
    68. Nicole Bolleyer & Lori Thorlakson, 2012. "Beyond Decentralization--The Comparative Study of Interdependence in Federal Systems," Publius: The Journal of Federalism, Oxford University Press, vol. 42(4), pages 566-591, October.
    69. Razvan Vlaicu, 2008. "Democracy, Credibility, and Clientelism," Journal of Law, Economics and Organization, Oxford University Press, vol. 24(2), pages 371-406, October.
    70. Freinkman, Lev & Plekhanov, Alexander, 2009. "Fiscal Decentralization in Rentier Regions: Evidence from Russia," World Development, Elsevier, vol. 37(2), pages 503-512, February.
    71. Daniel Berkowitz & David N. DeJong, 2005. "Entrepreneurship and Post-socialist Growth," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 67(1), pages 25-46, 02.
    72. Thomas Döring & Jan Schnellenbach, 2011. "A tale of two federalisms: Germany, the United States and the ubiquity of centralization," Constitutional Political Economy, Springer, vol. 22(1), pages 83-102, March.
    Full references (including those not matched with items on IDEAS)

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

    When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:37:y:2013:i:c:p:82-99. 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: (Zhang, Lei)

    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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.