Oil discoveries and democracy

Arbeitspapier

We evaluate the effect of natural resources on political regimes. We use the synthetic control method to compare evolution of the democracy level of countries affected by giant oil discoveries with the weighted democracy level of countries that do not incur the same event and have similar pre-event characteristics. Focusing on 12 countries affected by the peak of oil discovery from the 1970s, we find that the exogenous variation in oil endowment does not have the same effect on all countries. In most of cases, the event has a negative effect in the long run, but countries with a high level of democracy in the pre-event period are not affected by the peak of oil discoveries. These results support heterogeneity and non-linearities claimed in the more recent theoretical literature.

Object Details

• ISBN: 978-92-9256-100-0
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: WIDER Working Paper ; No. 2016/57

Classification and Topics

• Classification: Wirtschaft ; Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models ; Comparative Studies of Countries ; Other Economic Systems: Political Economy; Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
• Subject: natural resources ; oil discoveries ; democracy ; synthetic control method

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Masi, Tania ; Ricciuti, Roberto
• Event: Veröffentlichung
• (who): The United Nations University World Institute for Development Economics Research (UNU-WIDER)
• (where): Helsinki
• (when): 2016

Further information

• DOI: doi:10.35188/UNU-WIDER/2016/100-0
• Handle: http://hdl.handle.net/10419/146248
• Last update: 10.03.2025, 11:44 AM CET