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Natural resource rents, autocracy and the composition of government spending

Listed author(s):
  • Morten Endrikat

    ()

    (RWTH Aachen University)

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    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.

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    File URL: https://www.uni-marburg.de/fb02/makro/forschung/magkspapers/paper_2017/27-2017_endrikat.pdf
    File Function: First 201727
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    Paper provided by Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung) in its series MAGKS Papers on Economics with number 201727.

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    Length: 56 pages
    Date of creation: 2017
    Publication status: Forthcoming in
    Handle: RePEc:mar:magkse:201727
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    Web page: http://www.uni-marburg.de/fb02/
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