Secession with Natural Resources

Amrita Dhillon (), Pramila Krishnan, Manasa Patnam and Carlo Perroni
Additional contact information
Pramila Krishnan: University of Oxford
Manasa Patnam: CREST-ENSAE

CAGE Online Working Paper Series from Competitive Advantage in the Global Economy (CAGE)

Abstract: We look at the formation of new Indian states in 2001 to uncover the effects of political secession on the comparative economic performance of natural resource rich and natural resource poor areas. Resource rich constituencies fared comparatively worse within new states that inherited a relatively larger proportion of natural resources. We argue that these patterns reflect how political reorganisation affected the quality of state governance of natural resources. We describe a model of collusion between state politicians and resource rent recipients that can account for the relationships we see in the data between natural resource abundance and post-breakup local outcomes.

Keywords: Natural Resources and Economic Performance; Political Secession; Fiscal Federalism JEL Classification: D72; H77; O13 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-cdm, nep-dev, nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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https://warwick.ac.uk/fac/soc/economics/research/c ... 453-2020_perroni.pdf

Related works:
Journal Article: Secession with Natural Resources (2020)
Working Paper: Secession with Natural Resources (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:cge:wacage:453

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