The heterogeneous effect of oil discoveries on democracy. (1st May 2019)

• Record Type: Journal Article
• Authors: Masi, Tania; Ricciuti, Roberto
• Is Part Of: Economics & politics. Volume 31:Number 3(2019:Nov.)
• Page Start: 374
• Page End: 402
• Publication Date: 2019-05-01
• Subjects: democracy -- natural resources -- oil discoveries -- synthetic control method; Economic policy -- Periodicals; Political science -- Periodicals; 330.9
• DOI: 10.1111/ecpo.12131
• Languages: English
• ISSNs: 0954-1985

Abstract

Abstract: This paper evaluates the existence of a resource curse on political regimes using the Synthetic Control Method. Focusing on 12 countries, we compare their democracy level with the weighted democracy level of countries that have not experienced oil shocks and have similar pre‐event characteristics. We find that the exogenous variation in oil endowment does not have the same effect on all countries. In most cases, the event has a negative effect in the long run, but countries with a pre‐existing high level of democracy are not negatively affected.