Gaining by Shedding Case Selection Strictures

Author(s):  
Ryan Saylor

Advice on case selection often emphasizes selecting on some set of similar traits for controlled comparison—but without attention to regional contexts. This chapter highlights the benefits of unconventional cross-regional comparisons within the framework of comparative area studies (CAS), at least when analyzing the impact of natural resource booms on political institutions. Prevalent views on the resource curse see commodity booms as usually enervating institutions. However, a cross-regional comparison of African and Latin American cases can be employed to generate an alternative argument. Where resource booms simultaneously benefit exporters within and outside of the ruling coalition, threatened coalition insiders have responded with institutional fortification. This is true of the period of “dual enrichment” in Argentina (1852–86). In contrast, booms that exclusively benefit exporters within or outside of the ruling coalition do not create such existential threats and allow institutions to remain weak. This is evident in Colombia (1880–1905) and Ghana (1945–66).

Author(s):  
Magda Hinojosa ◽  
Miki Caul Kittilson

How does the more equitable representation of women in positions of power affect male and female citizens? We argue that the election of women to political office—particularly where women’s presence is highly visible to the public—strengthens the connections between women and the democratic process. For women, seeing more “people like me” in politics changes attitudes and orientations toward the democratic process. Substantial variation persists across Latin America in gender gaps in political engagement and political support. To assess the effects that women’s officeholding has on these, we pair comparative survey data from Latin American countries with case study evidence from Uruguay. The Uruguayan case offers a unique laboratory for testing the impact of women’s representation in elected positions of power on political engagement and support. Our panel survey of Uruguayan citizens reveals that the expected gender gaps in political knowledge, political interest, and other forms of political engagement were alive and well six weeks before the elections. Yet, just six weeks following the election—after the use of a gender quota had led to a doubling of women’s representation in the Senate—those gender gaps had largely disappeared or had significantly waned. Our findings indicate that far-reaching gender gaps can be overcome by more equitable representation in our political institutions.


2019 ◽  
Vol 73 (1) ◽  
pp. 111-125 ◽  
Author(s):  
Michael Tyburski ◽  
Patrick Egan ◽  
Aaron Schneider

Drawing on comparative resource curse literature and American literature on the determinants of corruption, we argue that the impact of natural resource extraction on corruption outcomes is state-dependent. That is, in environments where corruption is already high, natural resource windfalls allow political actors and economic elites to take advantage of state brokerage, further increasing corruption. However, in previously less-corrupt states, increased natural resource extraction will not induce corruption. We rely on hierarchical linear models to interpret federal corruption convictions data for the fifty American states between 1976 and 2012 and employ generalized method of moments estimators to account for potential endogeneity. The findings are robust to alternative specifications and have implications for the management of new resource extraction opportunities.


Author(s):  
Makio Yamada

The impact of imperialism on long-term development in the non-Western world was once a popular agenda of inquiry. After the modernization paradigm turned into despair for postcolonial economies, the notions of informal empire (Gallagher and Robinson, 1953) and dependency (Prebisch, 1950; Frank, 1967; Cardoso and Faletto, 1979) marked economists' discussions on underdevelopment in the non-Western world. The agenda, however, lost its momentum after the 1970s, when some Latin American and East Asian economies began growing and research interests and policy agendas shifted from blaming external constraints to identifying internal enablers (Haggard, 1990, 2018). The externalist scholarship became almost moribund thereafter, although its leitmotif was taken over by some Marxian scholarship such as the world-systems theory (Wallerstein, 1974) and its structuralist and anti-globalization offshoots – also partly reincarnated in the literature on the resource curse (Auty, 1993; Karl, 1997).


2021 ◽  
Vol 7 (1) ◽  
pp. 101-117
Author(s):  
Imran Sharif Chaudhry ◽  
Muhammad Faheem ◽  
Fatima Farooq

This study analyses the impact of natural resource rent on financial development to test the resource curse hypothesis in Saudi Arabia on quarterly data span from 1985Q1 to 2017Q4. We employ two novel methodologies at same time such as nonlinear autoregressive model (NARDL) and Wavelet-based quantile-on-quantile estimation to check the asymmetric behaviour of natural resource rent on financial development. The findings of NARDL confirm the nonlinear behaviour of natural resource rent with financial development. The results also show real GDP, gross capital formation and institutional quality affect financial development positively. The empirical results of Wavelet-based quantile-on-quantile estimation method also reveal the heterogeneous response of natural resource rent effect when decomposes into different quantiles that become positive to negative. The results further explain that the natural resource rent has a positive effect in short-run, but it exerts an adverse effect on financial development after attaining stability.


Author(s):  
Antonio Savoia ◽  
Kunal Sen

This article reviews the recent literature on the developmental effects of resource abundance, assessing likely effects and channels with respect to key development outcomes. To date, this area has received less analysis, although it is relevant to the United Nations’ Sustainable Development Goals agenda, as a significant number of the world's poor live in African resource-rich economies. We argue that the presence of a natural resource sector per se does not necessarily translate into worse development outcomes. The natural resource experience varies to a significant extent. Countries with similar levels of resource rents can end up with significantly different achievements in terms of income inequality, poverty, education, and health. The challenge is to explain the different natural resource experiences. A pivotal mechanism behind the developmental effects of the natural resources sector is the type of states and political institutions that resource-abundant economies develop. Expected final online publication date for the Annual Review of Resource Economics, Volume 13 is October 2021. Please see http://www.annualreviews.org/page/journal/pubdates for revised estimates.


2014 ◽  
Vol 56 (4) ◽  
pp. 1-21 ◽  
Author(s):  
David Doyle

AbstractWhy are some Latin American states plagued by persistent policy volatility while the policies of others remain relatively stable? This article explores the political economy of natural resource rents and policy volatility across Latin America. It argues that, all else equal, resource rents will create incentives for political leaders, which will result in repeated episodes of policy volatility. This effect, however, will depend on the structure of political institutions. Where political institutions fail to provide a forum for intertemporal exchange among political actors, natural resource rents will result in increased levels of policy volatility. Alternatively, where political institutions facilitate agreement among actors, resource rents will be conducive to policy stability. This argument is tested on a measure of policy volatility for 18 Latin American economies between 1993 and 2008. The statistical tests provide support for the argument.


2018 ◽  
Vol 34 (2) ◽  
pp. 153-171
Author(s):  
Nayef Al-Shammari ◽  
Noura Al-Hossayan ◽  
Mariam Behbehani

Purpose The purpose of this paper is to empirically examine the phenomenon of natural resource curse in an oil abundant economy of Kuwait. The study estimates a behavioral equilibrium exchange rate model for Kuwait during the period 1980-2014 to assess the impact of prices and productivity factors on real effective exchange rate. Design/methodology/approach It uses time series econometric techniques, such as unit root tests, Johansen cointegration test, Vector Error Correction Model, and Impulse Response Function, to estimate the model. Findings Unlike the results of the few other studies, the empirical results show a significant impact of the variables, such as balance of trade, economic growth, oil exports, interest rate, and inflation rate, on real effective exchange rate appreciation which indicates the existence of Dutch disease within the Kuwaiti economy. Similarly, the comparative analysis between changes in public expenditure and inflation rate shows the existence of Dutch disease in Kuwait during specific periods of time. Originality/value Natural resource curse or Dutch disease is a widely recognized phenomenon affecting the balance of economic activities in natural resource abundant countries. Symptoms of Dutch disease are perceived in several changes in the economy, particularly on price level, sectorial productivity, employment, and aggregate demand which in the long run worsen the country’s economic position and lower its international competitiveness. Dutch disease is not only a feature of natural resource abundant economies, but also can affect any economy with excessive revenue generating sector or high capital inflows which appreciates country’s exchange rate. However, the examination of Dutch disease in the economy is more important when investigating the impact on oil-producing countries (Apergis et al. 2014; Mohammadi and Jahan-Parvar, 2012; Jahan-Parvar and Mohammadi, 2011). Therefore, scholars studying Dutch disease phenomenon pay greater attention to cases of Dutch disease among oil-producing countries (i.e. Arezki and Ismail, 2013; Van der Ploeg and Venables, 2013; Jahan-Parvar, 2012; Cologni and Manera, 2013).


2011 ◽  
Vol 44 (6) ◽  
pp. 639-661 ◽  
Author(s):  
Nita Rudra ◽  
Nathan M. Jensen

Much political science scholarship, including important work in this journal, has explored the implications of natural resource endowments— particularly oil and other highly valuable export commodities—on political and economic outcomes. Although the first wave of literature emphasized the negative effects of these resources, more recent work emphasizes how domestic institutions can condition the relationship, sometimes leading to positive effects. In this special issue, the authors expand this literature in two important ways. First, they renew attention on the international dimensions of this relationship, exploring how trade, migration, foreign investment, and other global forces influence the effects these resources have on countries. Second, they link the study of the globalization—natural resources nexus to broader debates in international and comparative political economy, such as how domestic institutions shape the impact of globalization and how economic factors affect the political survival of regimes and individual leaders. The five studies in this collection use a variety of research methodologies (formal models, country case studies, and large- N empirical analyses) to examine several different international economic factors linking resources with politics. The findings provide new insights into the politics of natural resources, expand the traditional focus of the resource curse literature to include other natural resources (e.g., water), and shed light on whether globalization has the ability to improve natural resource governance around the world.


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