scholarly journals Does the political resource curse affect public finance? The vulnerability of tax revenue in resource-rich countries

2017 ◽  
Author(s):  
Christian von Haldenwang ◽  
Maksym Ivanyna
Keyword(s):  
Public Finance ◽  
Resource Curse ◽  
The Political ◽  
Tax Revenue ◽  
Political Resource ◽  
Rich Countries

Toward an Alternative Explanation for the Resource Curse: Natural Resources, Immigration, and Democratization

2011 ◽  
Vol 44 (6) ◽  
pp. 689-718 ◽  
Author(s):  
David H. Bearce ◽  
Jennifer A. Laks Hutnick
Keyword(s):  
Alternative Explanation ◽  
Causal Effect ◽  
Negative Relationship ◽  
Resource Curse ◽  
The Political ◽  
Significant Negative Relationship ◽  
Political Resource ◽  
Per Capita ◽  
Per Se ◽  
Rich Countries

Why do many resource-rich countries maintain autocratic political regimes? The authors’ proposed answer focuses on the causal effect of labor imports, or immigration. Using the logic offered by Acemoglu and Robinson’s democratization model, the authors posit that immigration makes democratization less likely because it facilitates redistributive concessions to appease the population within an autocratic regime. This immigration argument applies directly to the political resource curse since many resource-rich countries tend to also be labor scarce, leading them to import foreign laborers. Consistent with this understanding, the authors find a statistically significant negative relationship between net immigration per capita and democratization in future periods. Their results also show that when controlling for this immigration effect, the standard resource curse variables lose significance in a democratization model. This latter result suggests that much of the so-called resource curse stems not from resource endowments per se but rather from the labor imports related to resource production.

Oil to cash in Somaliland: a debate whose time has come

2018 ◽  
Vol 56 (4) ◽  
pp. 619-643
Author(s):  
Scott Pegg
Keyword(s):  
Political Institutions ◽  
Resource Curse ◽  
Significant Risk ◽  
The Political ◽  
Political Elites ◽  
Annual Budget ◽  
Political Resource ◽  
Democratic Election ◽  
Oil Revenues ◽  
Direct Distribution

AbstractSomaliland might start producing oil in 2019. Yet, it has done little to prepare for the arrival of oil revenues which could exceed its current annual budget. Although Somaliland has been largely peaceful for two decades and recently inaugurated its fifth president after holding a democratic election, it remains entirely unrecognised. Oil revenues could positively transform Somaliland's fragile political economy, but they also place it at significant risk for a political resource curse that could threaten its democracy, peace and political institutions. Oil to cash or the direct distribution of oil revenues to citizens has been posited as a solution to the political resource curse. Somaliland has many of the elements necessary to make oil to cash work in place. Several factors combine to make Somaliland both potentially receptive to oil to cash and uniquely positioned to benefit from it. Interviews with political elites demonstrate receptiveness to the idea. Sample revenue calculations from other African oil producers highlight just how such a system could work to benefit Somaliland.

scholarly journals Does Information Break the Political Resource Curse? Experimental Evidence from Mozambique

2019 ◽  
Author(s):  
Ines Vilela ◽  
Pedro C. Vicente ◽  
Alexander Coutts ◽  
Alex Armand
Keyword(s):  
Experimental Evidence ◽  
Resource Curse ◽  
The Political ◽  
Political Resource

scholarly journals The British Academy Brian Barry Prize Essay: An Exit, Voice and Loyalty Model of Politics

2017 ◽  
Vol 47 (4) ◽  
pp. 719-748 ◽  
Author(s):  
William Roberts Clark ◽  
Matt Golder ◽  
Sona N. Golder
Keyword(s):  
Foreign Aid ◽  
Economic Performance ◽  
Resource Curse ◽  
The Political ◽  
Modernization Theory ◽  
Typically Develop ◽  
Political Resource ◽  
Prize Essay

Political scientists typically develop different models to examine distinct political phenomena such as lobbying, protests, elections and conflict. These specific models can provide important insights into a particular event, process or outcome of interest. This article takes a different tack. Rather than focus on the specificities of a given political phenomenon, this study constructs a model that captures the key elements common to most political situations. This model represents a reformulation and extension of Albert Hirschman’s famousExit, Voice and Loyaltyframework. To highlight the value that comes from focusing on the commonalities that exist across apparently disparate political phenomena, the article applies the model to several issues in the democratization literature related to modernization theory, the political resource curse, inequality, foreign aid and economic performance.

scholarly journals Using information to break the political resource curse in natural gas management in Mozambique

2019 ◽  
Author(s):  
Alex Armand ◽  
◽  
Ana Isabel Costa ◽  
Alexander Coutts ◽  
Pedro Vicente ◽  
...  
Keyword(s):  
Natural Gas ◽  
Resource Curse ◽  
The Political ◽  
Political Resource

scholarly journals Independence of Central Banks in Commodity Economies

2016 ◽  
pp. 6-25 ◽  
Author(s):  
Viktor Koziuk
Keyword(s):  
Resource Curse ◽  
Central Banks ◽  
Political Regime ◽  
The Political ◽  
General Tendency ◽  
Low Degree ◽  
Multivariable Regression ◽  
Rich Countries ◽  
The Impact

This article introduces the hypothesis that resource-rich countries display a low degree of central bank independence (CBI). This hypothesis is proven based on multivariable regression, but the influence of resource factors is not considered strong enough compared with previous inflationary experience and the characteristics of the political regime. It stresses that the impact of the commodity wealth factor on CBI choice is direct (through the share of commodity exports in total export) and indirect through the lower level of democracy in commodities countries that feature more dependent central banks. Also, this hypothesis is proven based on the grouping of countries. Such grouping shows that despite a general tendency of CBI increase in the world, a group of commodity exporting countries experiencing a substantially lower level of mean GMT-index, ECWN-index, and transparency-index resulted in lower CBI compared with groups of emerging markets and developing countries. Explaining these phenomena is rooted in features of institutional distortions in commodity economies, the specific structure of interventionist policy to overcome a "resource curse", and the specific role of the exchange rate and FX reserves in intertemporal macroeconomic policy.

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