IDEAS home Printed from
   My bibliography  Save this paper

Rente naturelle et composition des dépenses publiques


  • Louis-Marie PHILIPPOT



In this paper, we investigate the impact of natural resource rent on public expenditure composition. Our hypothesis is that, when institutional quality is low, politicians have more discretionary power on the allocation of public resources. Then public expenditure composition tends to be modified in favour of two types of public spending : those which generate important political benefits and those which are favoured the most by politicians. We use the model of political-budget cycles developed by Drazen and Eslava (2005a) to support our hypothesis. In this model, politicians try to influence citizens by manipulating public expenditure composition (and not the level of government spending). In the empirical part of this paper, we estimate a fixed effects model in which we explain the share of a type of public expenditure in total public spending by several variables among them we have a measure of natural resource rent. We use rent data compiled by the World Bank and calculate rent from ten raw agricultural products. According to our results, natural resource abundance is associated with higher current expenditure especially subsidies. Natural resource rent seems to have no significant effect on public investment. It is even associated with lower spending on transport and communications (a proxy for investment in public infrastructure).

Suggested Citation

  • Louis-Marie PHILIPPOT, 2008. "Rente naturelle et composition des dépenses publiques," Working Papers 200826, CERDI.
  • Handle: RePEc:cdi:wpaper:1043

    Download full text from publisher

    File URL:
    Download Restriction: no


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cdi:wpaper:1043. 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: (Vincent Mazenod). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.