Natural resource rents, autocracy and the composition of government spending

Morten Endrikat ()
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Morten Endrikat: RWTH Aachen University

MAGKS Papers on Economics from Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung)

Abstract: 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.

Keywords: Natural Resources; resource curse; institutions; government spending (search for similar items in EconPapers)
JEL-codes: H50 Q32 Q38 (search for similar items in EconPapers)
Pages: 56 pages
Date: 2017
New Economics Papers: this item is included in nep-ene and nep-env
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:mar:magkse:201727

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