Do natural resources fuel authoritarianism? A reappraisal of the resource curse
Open accessAbstract
A large body of scholarship finds a negative relationship between natural resources and democracy. Extant cross-country regressions, however, assume random effects and are run on panel datasets with relatively short time dimensions. Because natural resource reliance is not an exogenous variable, this is not an effective strategy for uncovering causal relationships. Numerous sources of bias may be driving the results, the most serious of which is omitted variable bias induced by unobserved country-specific and time-invariant heterogeneity. To address these problems, we develop unique historical datasets, employ time-series centric techniques, and operationalize explicitly specified counterfactuals. We test to see if there is a long-run relationship between resource reliance and regime type within countries over time, both on a country-by-country basis and across several different panels. We find that increases in resource reliance are not associated with authoritarianism. In fact, in many specifications we generate results that suggest a resource blessing.
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Economic variables provide partial answers to why governance in some states and societies is more authoritarian than in others.
“Economic variables—including the overall availability of economic resources and the manner in which those resources are distributed—provide partial answers to that question [3], [4], [5], [6].”
From Pathogens and Politics: Further Evidence That Parasite Prevalence Predicts Authoritarianism (2013) · cites this paper as [4]
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“They are also consistent with a recent study by Jones Luong and Weinthal (2010), which argues that oil wealth only leads to harmful outcomes when the government has a dominant role in the oil industry.”
BackgroundResultThe ICTD Government Revenue DatasetPreprint
Prichard, W., Cobham, A., & Goodall, A. J. (2014) · SSRN Electronic Journal · doi:10.2139/ssrn.2496442 · Cited by 209 · see citing works
“Reflecting these problems, individual researchers have increasingly sought to compile their own datasets either by merging multiple data sources (e.g. Benedek et al. 2012), or returning to country-level sources (e.g. Haber and Menaldo 2011).”
BackgroundMethodResultInfluentialRevisiting the Resource Curse: Natural Disasters, the Price of Oil, and Democracy
Ramsay, K. W. (2011) · International Organization · doi:10.1017/s002081831100018x · Cited by 196 · see citing works
Ahmed, K., Mahalik, M. K., & Shahbaz, M. Q. (2016) · Resources Policy · doi:10.1016/j.resourpol.2016.06.005 · Cited by 199 · see citing works
Climato-economic habitats support patterns of human needs, stresses, and freedoms
de Vliert, E. V. (2013) · Behavioral and Brain Sciences · doi:10.1017/s0140525x12002828 · Cited by 204 · see citing works
Autocracy and Redistribution: The Politics of Land Reform
Albertus, M. (2015) · doi:10.1017/cbo9781316227107 · Cited by 390 · see citing works
Poor Institutions, Rich Mines: Resource Curse in the Origins of the Sicilian Mafia
Buonanno, P., Durante, R., Prarolo, G., & Vanin, P. (2015) · The Economic Journal · doi:10.1111/ecoj.12236 · Cited by 95 · see citing works
The Middle East and North Africa’s Resilient Monarchs
Menaldo, V. (2012) · The Journal of Politics · doi:10.1017/s0022381612000436 · Cited by 185 · see citing works
Self-citationElectoral Authoritarianism and Human Development
Miller, M. K. (2015) · Comparative Political Studies · doi:10.1177/0010414015582051 · Cited by 183 · see citing works
Pathogens and Politics: Further Evidence That Parasite Prevalence Predicts Authoritarianism
Murray, D. R., Schaller, M., & Suedfeld, P. (2013) · PLoS ONE · doi:10.1371/journal.pone.0062275 · Cited by 182 · see citing works
“Why is governance in some states and societies more authoritarian than in others? Economic variables—including the overall availability of economic resources and the manner in which those resources are distributed—provide partial answers to that question [3,4,5,6].”
BackgroundParty Strength and Economic Growth
Bizzarro, F., Gerring, J., Knutsen, C. H., Hicken, A. D., Bernhard, M. H., Skaaning, S., Coppedge, M., & Lindberg, S. I. (2018) · World Politics · doi:10.1017/s0043887117000375 · Cited by 179 · see citing works
The extractive industries and development: The resource curse at the micro, meso and macro levels
Gilberthorpe, E., & Papyrakis, E. (2015) · The Extractive Industries and Society · doi:10.1016/j.exis.2015.02.008 · Cited by 179 · see citing works
“…that it is the extent of mineral wealth that matters for democratic accountability rather than any shorter term changes in mineral affluence (e.g. a short-term income windfall induced by price fluctuations; see Haber and Menaldo, 2010; Wacziarg, 2012; Wright et al., 2015; Andersen and Ross, 2014).”
BackgroundDo natural resources impede renewable energy production in the EU? A mixed-methods analysis
Ahmadov, A. K., & van der Borg, C. (2019) · Energy Policy · doi:10.1016/j.enpol.2018.11.044 · Cited by 183 · see citing works
Knutsen, C. H., Nygård, H. M., & Wig, T. (2016) · World Politics · doi:10.1017/s0043887116000149 · Cited by 172 · see citing works
Authoritarianism and the Elite Origins of Democracy
Albertus, M., & Menaldo, V. (2017) · Cambridge University Press eBooks · doi:10.1017/9781108185950 · Cited by 167 · see citing works
Self-citationWeigel, J. (2020) · The Quarterly Journal of Economics · doi:10.1093/qje/qjaa019 · Cited by 166 · see citing works
Extending the concept of the resource curse: Natural resources and public spending on health
Cockx, L., & Francken, N. (2014) · Ecological Economics · doi:10.1016/j.ecolecon.2014.10.013 · Cited by 161 · see citing works
Power and the Vote: Elections and Electricity in the Developing World
Min, B. (2015) · Cited by 161 · see citing works
The First Law of Petropolitics
Wacziarg, R. T. (2011) · Economica · doi:10.1111/j.1468-0335.2011.00902.x · Cited by 160 · see citing works
Democratic Pieces: Autocratic Elections and Democratic Development since 1815
Miller, M. K. (2013) · British Journal of Political Science · doi:10.1017/s0007123413000446 · Cited by 160 · see citing works
“86 Haber and Menaldo 2011.”
How Collateral Laws Shape Lending and Sectoral Activity
Calomiris, C. W., Larraín, M., Liberti, J. M., & Sturgess, J. D. (2014) · Journal of Financial Economics · doi:10.1016/j.jfineco.2016.09.005 · Cited by 188 · see citing works
“As a proxy for a country’s comparative advantage in real-estate intensive sectors, we use a measure of natural resource abundance, defined as the real value of petroleum, coal, natural gas, and metals produced per capita (Haber and Menaldo, 2011).”
Economic Development, Violent Leader Removal, and Democratization
Miller, M. K. (2012) · American Journal of Political Science · doi:10.1111/j.1540-5907.2012.00595.x · Cited by 157 · see citing works
Oil Price Shocks, Income, and Democracy
Brüeckner, M., Ciccone, A., & Tesei, A. (2011) · The Review of Economics and Statistics · doi:10.1162/rest_a_00201 · Cited by 156 · see citing works
“Haber and Menaldo (2011) examine the relationship between several measures of oil income and democracy going back as far as 1861. Their approach exploits the variation of oil prices as well as changes in oil production. Their main finding is that if anything, the data point to a positive rather than a negative effect…”
InfluentialEconomic diversification in Saudi Arabia: Myth or reality?
Albassam, B. A. (2015) · Resources Policy · doi:10.1016/j.resourpol.2015.02.005 · Cited by 153 · see citing works
“Similarly, Hammond (2011), studying Angola's economy, which also depends on the oil and gas sectors, found that most of the development occurs in the capital city of Luanda and other big cities away from rural areas.”
BackgroundColgan, J. D. (2013) · Cambridge University Press eBooks · doi:10.1017/cbo9781139342476 · Cited by 151 · see citing works
Regime legitimation, elite cohesion and the durability of autocratic regime types
Kailitz, S., & Stockemer, D. (2017) · International Political Science Review · doi:10.1177/0192512115616830 · Cited by 92 · see citing works
“Based on the coding of Haber and Menaldo (2011) we classified 56 countries (see Appendix 3, available online at: http://ips.sagepub.com) as resource dependent (coded 1).”
BackgroundWhich Democracies Will Last? Coups, Incumbent Takeovers, and the Dynamic of Democratic Consolidation
Svolik, M. W. (2015) · British Journal of Political Science · doi:10.1017/s0007123413000550 · Cited by 265 · see citing works
“43 Clark, Golder, and Golder 2012; Haber and Menaldo 2011.”
Mineral resources and conflicts in DRC: a case of ecological fallacy?
Maystadt, J.-F., Luca, G. D. D., Sekeris, P. G., & Ulimwengu, J. M. (2013) · Oxford Economic Papers · doi:10.1093/oep/gpt037 · Cited by 138 · see citing works
“Yet, despite the large body of literature addressing the nexus, the evidence re1Recent contributions to the resource curse literature include Haber and Menaldo (2011), Bruckner, Ciccone and Tesei (2012), Wacziarg (2012).”
BackgroundResource Windfalls, Political Regimes, and Political Stability
Caselli, F., & Tesei, A. (2016) · The Review of Economics and Statistics · doi:10.1162/rest_a_00538 · Cited by 136 · see citing works
“Haber and Menaldo (2011) and Wacziarg (2012) find no evidence that oil windfalls lead to greater autocracy. One concern with the Haber and Menaldo (2011) study is that its measure of oil revenue, partly based on oil production, is potentially endogenous to democratic change, while a possible concern with Wacziarg’s an…”
InfluentialThe Politics of Institutional Weakness in Latin America
Brinks, D. M., Levitsky, S., & Murillo, M. V. (2020) · Cambridge University Press eBooks · doi:10.1017/9781108776608 · Cited by 140 · see citing works
Democratization During the Third Wave
Haggard, S. M., & Kaufman, R. R. (2016) · Annual Review of Political Science · doi:10.1146/annurev-polisci-042114-015137 · Cited by 135 · see citing works
Latin American state building in comparative perspective: social foundations of institutional order
(2013) · Choice Reviews Online · doi:10.5860/choice.51-2324 · Cited by 134 · see citing works
Harris, K. (2013) · International Journal Middle East Studies · doi:10.1017/s0020743812001250 · Cited by 133 · see citing works
Ampofo, G. K. M., Cheng, J., Asante, D. A., & Bosah, C. P. (2020) · Resources Policy · doi:10.1016/j.resourpol.2020.101710 · Cited by 133 · see citing works
Wiens, D., Poast, P., & Clark, W. R. (2014) · Political Research Quarterly · doi:10.1177/1065912914543836 · Cited by 131 · see citing works
“7 Specifically, we use Przeworksi et al’s (2000) Regime variable (as updated by Cheibub, Gandhi, and Vreeland 2010), which has been extended back to 1800 by Haber and Menaldo (2011).”
InfluentialOil and Democracy: Endogenous Natural Resources and the Political “Resource Curse”
Brooks, S. M., & Kurtz, M. J. (2016) · International Organization · doi:10.1017/s0020818316000072 · Cited by 132 · see citing works
“Haber and Menaldo 2011. authoritarianism disappears.”
BackgroundInfluentialSafeguarding Democracy: Powersharing and Democratic Survival
Graham, B. A. T., Miller, M. K., & Strøm, K. W. (2017) · American Political Science Review · doi:10.1017/s0003055417000326 · Cited by 64 · see citing works
Resource Rents, Democracy, Corruption and Conflict: Evidence from Sub-Saharan Africa
Arezki, R., & Gylfason, Þ. (2013) · Journal of African Economies · doi:10.1093/jae/ejs036 · Cited by 130 · see citing works
The Origins of Dominant Parties: Building Authoritarian Institutions in Post-Soviet Russia
Reuter, O. J. (2017) · Cambridge University Press eBooks · doi:10.1017/9781316761649 · Cited by 105 · see citing works
Ponce, A. F., & McClintock, C. (2014) · Latin American Politics and Society · doi:10.1111/j.1548-2456.2014.00243.x · Cited by 122 · see citing works
Does Oil Wealth Affect Democracy in Africa?
Anyanwu, J. C., & Erhijakpor, A. E. O. (2014) · African Development Review · doi:10.1111/1467-8268.12061 · Cited by 117 · see citing works
Commodity Windfalls, Democracy and External Debt
Arezki, R., & Brüeckner, M. (2012) · The Economic Journal · doi:10.1111/j.1468-0297.2012.02508.x · Cited by 111 · see citing works
Not so Harmless After All: The Fixed-Effects Model
Plümper, T., & Troeger, V. E. (2018) · Political Analysis · doi:10.1017/pan.2018.17 · Cited by 111 · see citing works
Credible Commitments? Explaining IGO Suspensions to Sanction Political Backsliding
von Borzyskowski, I., & Vabulas, F. (2019) · International Studies Quarterly · doi:10.1093/isq/sqy051 · Cited by 47 · see citing works
L'état entre politics, policies et polity : ou peut-on sortir du triangle des Bermudes ?
Leca, J. (2012) · Gouvernement et action publique · doi:10.3917/gap.121.0059 · Cited by 37 · see citing works
Natural Resources, Institutional Quality, and Economic Growth: an African Tale
Epo, B., & Faha, D. R. N. (2019) · European Journal of Development Research · doi:10.1057/s41287-019-00222-6 · Cited by 99 · see citing works
The Autocratic Welfare State: Old-Age Pensions, Credible Commitments, and Regime Survival
Knutsen, C. H., & Rasmussen, M. (2018) · Comparative Political Studies · doi:10.1177/0010414017710265 · Cited by 146 · see citing works
Ahmadov, A. (2013) · Comparative Political Studies · doi:10.1177/0010414013495358 · Cited by 100 · see citing works
“Others argue that oil may not hinder democracy and can even be a blessing in other geographic regions, such as Latin America (Dunning, 2008; Smith & Kraus, 2005), or across regions (Gurses, 2009; Haber & Menaldo, 2011).”
BackgroundMethodInfluentialCursed resources, or articulations of economic theory in the Gulf of Guinea
Weszkalnys, G. (2011) · Economy and Society · doi:10.1080/03085147.2011.580177 · Cited by 100 · see citing works
“Some scholars have interrogated the association between resource dependence and slow economic growth (Brunnschweiler & Bulte, 2008), the impact of natural resources on democracy (Haber & Menaldo, 2010) or the relationship between oil and conflict (Rigterink, 2010).”
BackgroundOil, Domestic Politics, and International Conflict
Colgan, J. D. (2014) · Energy Research & Social Science · doi:10.1016/j.erss.2014.03.005 · Cited by 97 · see citing works
A political economy of human rights: Oil, natural gas, and state incentives to repress 1
DeMeritt, J. H. R., & Young, J. K. (2013) · Conflict Management and Peace Science · doi:10.1177/0738894212473915 · Cited by 97 · see citing works
“Haber and Menaldo (2011) revisit the resource curse and find that natural resource wealth does not promote dictatorship over the long run.”
BackgroundRemittances and Democratization
Escribà-Folch, A., Meseguer, C., & Wright, J. (2015) · International Studies Quarterly · doi:10.1111/isqu.12180 · Cited by 169 · see citing works
“Further, studies that account for country-specific factors question the empirical link between oil and democratization (Haber and Menaldo 2011; Wright, Frantz and Geddes 2014).”
BackgroundRegional Dynamics in a Decentralized Indonesia
Hill, H. (2014) · ISEAS Publishing eBooks · doi:10.1355/9789814519175 · Cited by 95 · see citing works
Immigration and right-wing populism: An origin story
Shehaj, A., Shin, A., & Inglehart, R. (2019) · Party Politics · doi:10.1177/1354068819849888 · Cited by 104 · see citing works
“For macroeconomic indicators, we used Penn World Table via Haber and Menaldo (2011) and supplemented it with data from the World Bank.”
MethodResource Rents, Redistribution, and Halving Global Poverty: The Resource Dividend
Segal, P. (2010) · World Development · doi:10.1016/j.worlddev.2010.08.013 · Cited by 94 · see citing works
The Evolving Importance of Banks and Securities MarketsPreprint
Demirgüç‐Kunt, A., Feyen, E. H. B., & Levine, R. E. (2012) · SSRN Electronic Journal · doi:10.2139/ssrn.2083622 · Cited by 94 · see citing works
Anticipating Oil: The Temporal Politics of a Disaster Yet to Come
Weszkalnys, G. (2014) · The Sociological Review · doi:10.1111/1467-954x.12130 · Cited by 93 · see citing works
“4 A growing literature now questions the existence of the resource curse phenomenon (eg Brunnschweiler and Bulte, 2008; Haber and Menaldo, 2010).”
BackgroundCommodity Price Volatility and Inclusive Growth in Low-Income Countries
Arezki, R., Pattillo, C., Quintyn, M., & Zhu, M. (2012) · International Monetary Fund eBooks · doi:10.5089/9781616353797.071 · Cited by 98 · see citing works
The Political Economy of the Natural Resource Curse: A Survey of Theory and Evidence
Deacon, R. T. T. (2011) · Foundations and Trends® in Microeconomics · doi:10.1561/0700000042 · Cited by 93 · see citing works
“13 Haber and Menaldo (2011) use similar methods and annual panel data to test for an association between a country’s Polity score and various measures of the income it generates from fossil fuel and minerals production.”
The Big Oil Change: A Closer look at the Haber-Menaldo AnalysisPreprint
Ross, M. L., & Andersen, J. J. (2012) · SSRN Electronic Journal · Cited by 93 · see citing works
Natural Resources in Latin America and the Caribbean
Sinnott, E., Nashat, B., & de la Torre, A. (2010) · World Bank, Washington, DC eBooks · doi:10.1596/978-0-8213-8482-4 · Cited by 91 · see citing works
Restraining the Huddled Masses: Migration Policy and Autocratic Survival
Miller, M. K., & Peters, M. E. (2018) · British Journal of Political Science · doi:10.1017/s0007123417000680 · Cited by 90 · see citing works
Why do leaders nationalize the oil industry? The politics of resource expropriation
Mahdavi, P. (2014) · Energy Policy · doi:10.1016/j.enpol.2014.09.023 · Cited by 89 · see citing works
“Scholars working on the political resource curse – that is, the hypothesized relationship between oil and authoritarianism – point to the wave of nationalizations in the 1970s as a turning point for autocrats in gaining control over lucrative resource revenues (Aslaksen, 2010; Dunning, 2008; Haber and Menaldo, 2011; R…”
BackgroundThe resource curse and the decentralization of oil revenue: the case of Nigeria
Idemudia, U. (2012) · Journal of Cleaner Production · doi:10.1016/j.jclepro.2012.05.046 · Cited by 89 · see citing works
Intra-Elite Competition and Long-Run Fiscal Development
Beramendi, P., Dincecco, M., & Rogers, M. Z. (2016) · The Journal of Politics · doi:10.1086/700273 · Cited by 89 · see citing works
Economic Origins of Democratic Breakdown? The Redistributive Model and the Postcolonial State
Slater, D., Smith, B., & Nair, G. (2014) · Perspectives on Politics · doi:10.1017/s1537592714000875 · Cited by 88 · see citing works
Sustainable livelihoods and indicators for regional development in mining economies
Horsley, J., Prout, S., Tonts, M., & Ali, S. H. (2015) · The Extractive Industries and Society · doi:10.1016/j.exis.2014.12.001 · Cited by 88 · see citing works
Oil, domestic conflict, and opportunities for democratization
Colgan, J. D. (2014) · Journal of Peace Research · doi:10.1177/0022343314545526 · Cited by 87 · see citing works
When human capital threatens the Capitol
Savage, J. D., & Caverley, J. D. (2017) · Journal of Peace Research · doi:10.1177/0022343317713557 · Cited by 89 · see citing works
The Strategic Origins of Electoral Authoritarianism
Miller, M. K. (2017) · British Journal of Political Science · doi:10.1017/s0007123417000394 · Cited by 86 · see citing works
A Handbook of Primary Commodities in the Global Economy
(2008) · Raw materials report/Minerals & energy./Minerals & energy · doi:10.1080/14041040802433910 · Cited by 86 · see citing works
Does Democracy Enhance Health? New Empirical Evidence 1900–2012
Wang, Y.-T., Mechkova, V., & Andersson, F. (2018) · Political Research Quarterly · doi:10.1177/1065912918798506 · Cited by 91 · see citing works
“To control for oil rents, we use a variable that captures the real value of petroleum produced per capita in a country (Haber and Menaldo 2011).”
MethodClubs of autocrats: Regional organizations and authoritarian survival
Debre, M. J. (2021) · The Review of International Organizations · doi:10.1007/s11558-021-09428-y · Cited by 84 · see citing works
V-Dem Codebook V8Preprint
Coppedge, M., Gerring, J., Knutsen, C. H., Lindberg, S. I., Skaaning, S., Teorell, J., Altman, D., Bernhard, M. H., Cornell, A., Fish, M. S., et al. (2018) · SSRN Electronic Journal · doi:10.2139/ssrn.3172791 · Cited by 84 · see citing works
- Authors
- HABER, S., & MENALDO, V.
- Affiliations
- Hoover Institution (US)
- University of Washington (US)
- Corresponding author
- HABER, STEPHEN
- MENALDO, VICTOR
- ORCID
- MENALDO, VICTOR
- Venue
- American Political Science Review
- Publisher
- Cambridge University Press (CUP)
- Published
- 2011-01-27
- Volume
- 105
- Issue
- 1
- Pages
- 1-26
- ISSN
- 0003-0554 (ISSN-L)
- 1537-5943
- OpenAlex
- W2114260857
- Cited by
- 1,128
- References
- 105
- Citations by year
- 2026: 40 · 2025: 42 · 2024: 45 · 2023: 69 · 2022: 89 · 2021: 52 · 2020: 134 · 2019: 81 · 2018: 99 · 2017: 79 · 2016: 70 · 2015: 76 · 2014: 60 · 2013: 64 · 2012: 66
- FWCI
- 188.93
- Type
- journal article
- Language
- en
- Open access
- green
- papers.ssrn.com
- Locations
- American Political Science Review (publishedVersion)
- SSRN Electronic Journal (submittedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Natural Resources and Economic Development
- Social Sciences › Sociology and Political Science › Political Conflict and Governance
- Social Sciences › Sociology and Political Science › Corruption and Economic Development
- Keywords
- resource curse, natural resources, authoritarianism, democracy, resource dependence, political regimes, omitted variable bias, counterfactual analysis, resource blessing
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