Oil rents, corruption, and state stability: Evidence from panel data regressions

Arezki, Rabah and Bruckner, Markus (2011) Oil rents, corruption, and state stability: Evidence from panel data regressions. European Economic Review, 55 7: 955-963. doi:10.1016/j.euroecorev.2011.03.004


Author Arezki, Rabah
Bruckner, Markus
Title Oil rents, corruption, and state stability: Evidence from panel data regressions
Journal name European Economic Review   Check publisher's open access policy
ISSN 0014-2921
1873-572X
Publication date 2011-10-01
Year available 2011
Sub-type Article (original research)
DOI 10.1016/j.euroecorev.2011.03.004
Open Access Status DOI
Volume 55
Issue 7
Start page 955
End page 963
Total pages 9
Place of publication Amsterdam, The Netherlands
Publisher Elsevier
Language eng
Formatted abstract
We examine the effects of oil rents on corruption and state stability exploiting the exogenous within-country variation of a new measure of oil rents for a panel of 30 oil-exporting countries during the period 1992–2005. We find that an increase in oil rents significantly increases corruption, significantly deteriorates political rights while at the same time leading to a significant improvement in civil liberties. We argue that these findings can be explained by the political elite having an incentive to extend civil liberties but reduce political rights in the presence of oil windfalls to evade redistribution and conflict. We support our argument documenting that there is a significant effect of oil rents on corruption in countries with a high share of state participation in oil production while no such link exists in countries where state participation in oil production is low.
Keyword Oil rents
Corruption
State stability
State participation
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status Non-UQ

Document type: Journal Article
Sub-type: Article (original research)
Collection: School of Economics Publications
 
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Created: Fri, 06 Feb 2015, 03:09:56 EST by Alys Hohnen on behalf of School of Economics