Do Natural Resources Influence Who Comes to Power, and How?

Maria Carreri

No 11136, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Do natural resources impair institutional outcomes? Existing work studies how natural resources influence the behavior of leaders in power. We study how they influence leaders' rise to power. Our analysis focuses on oil price shocks and local democracy in Colombia, a country mired in civil conflict. We find that when the price of oil rises, legislators affiliated with right-wing paramilitary groups win office more in oil-producing municipalities. Consistent with the use of force to gain power, positive price shocks also induce an increase in paramilitary violence, and reduce electoral competition: fewer candidates run for office, and winners are elected with a wider vote margin. Ultimately, fewer centrist legislators are elected to office, and there is diminished representation at the center. Our findings highlight how natural resources undermine democracy by distorting elections, and suggest that conflict leaves the political sector vulnerable to the resource curse.

Keywords: Natural resources; Elections; Democracy; Leaders; Conflict (search for similar items in EconPapers)
JEL-codes: D72 H11 H70 O12 O13 Q34 (search for similar items in EconPapers)
Date: 2016-02
New Economics Papers: this item is included in nep-cdm, nep-ene, nep-env, nep-gro and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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