EconPapers    
Economics at your fingertips  
 

Resource Windfalls, Political Regimes, and Political Stability

Francesco Caselli () and Andrea Tesei

No 8662, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We study theoretically and empirically whether natural resource windfalls affect political regimes. We document the following regularities. Natural resource windfalls have no effect on the political system when they occur in democracies. However, windfalls have significant political consequences in autocracies. In particular, when an autocratic country receives a positive shock to its flow of resource rents it responds by becoming even more autocratic. Furthermore, there is heterogeneity in the response of autocracies. In deeply entrenched autocracies the effect of windfalls on politics is virtually nil, while in moderately entrenched autocracies windfalls significantly exacerbate the autocratic nature of the political system. To frame the empirical work we present a simple model in which political incumbents choose the degree of political contestability by deciding how much to spend on vote-buying, bullying, or outright repression. Potential challengers decide whether or not to try to unseat the incumbent and replace him. The model uncovers a reason for the asymmetric impact of resource windfalls on democracies and autocracies, as well as the differential impact within autocratic regimes.

Keywords: Autocracy; Resource windfalls (search for similar items in EconPapers)
Date: 2011-11
New Economics Papers: this item is included in nep-cdm and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16) Track citations by RSS feed

Downloads: (external link)
https://cepr.org/publications/DP8662 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: Resource Windfalls, Political Regimes, and Political Stability (2016) Downloads
Working Paper: Resource windfalls, political regimes and political stability (2016) Downloads
Working Paper: Resource Windfalls, Political Regimes, and Political Stability (2011) Downloads
Working Paper: Resource Windfalls, Political Regimes, and Political Stability (2011) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:8662

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP8662

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2023-07-05
Handle: RePEc:cpr:ceprdp:8662