Work

Oil and property rights

Year: 2022

Type: article

Abstract: We investigate the role of oil in economic institutions for a sample of 150 countries between 1960 and 2014. We find that higher per capita values of oil production result in weaker economic institutions in the form of lower levels of private property rights protection. This result is robust to alternative instrumental-variable approaches as well as different operationalizations of oil income and production as well as economic institutions. We argue that our finding is indicative of oil interest groups using their economic power to achieve weaker property rights to maintain their economic-political position in society. We also provide evidence that oil induces clientelism, corruption and the repression of dissenting political voices. We argue that this finding is consistent with the idea that oil interest groups translate their outsized economic into political power through these transmission channels to achieve lower levels of property rights protection.

Source: Resources Policy

DOI: 10.1016/j.resourpol.2022.103069

Authors: Indra de Soysa, Tim Krieger, Daniel Meierrieks

Institutions: Norwegian University of Science and Technology, University of Freiburg, WZB Berlin Social Science Center

Language: English

Topic: Natural Resources and Economic Development

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: hybrid

Estimated APC paid: $2,310