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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—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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The Fate of Former Authoritarian Elites Under Democracy
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Buonanno, P., Durante, R., Prarolo, G., & Vanin, P. (2012) · SSRN Electronic Journal · doi:10.2139/ssrn.2142372 · Cited by 133
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BackgroundThe Social Determinants of Enforcement
Amengual, M., & Dargent, E. (2020) · Cambridge University Press eBooks · doi:10.1017/9781108776608.007 · Cited by 42
Alternatives to local content requirements in resource-rich countries
Kolstad, I., & Kinyondo, A. (2016) · Oxford Development Studies · doi:10.1080/13600818.2016.1262836 · Cited by 34
“For dissenting views on the resource curse, see Brunnschweiler and Bulte (2008), Alexeev and Conrad (2009) and Haber and Menaldo (2011).”
BackgroundIngesson, T., Lindberg, M., Lindvall, J., & Teorell, J. (2017) · Democratization · doi:10.1080/13510347.2017.1405935 · Cited by 40
Does oil really curse democracy? A long-run time-series analysis of 127 countries
O’Connor, K. J., Blanco, L. R., & Nugent, J. B. (2018) · Resources Policy · doi:10.1016/j.resourpol.2018.03.012 · Cited by 33
National Oil Companies and the Future of the Oil Industry
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Lim, S., Mosley, L., & Prakash, A. (2015) · World Development · doi:10.1016/j.worlddev.2014.10.025 · Cited by 31
“GDP per capita data are from Haber and Menaldo (2011).”
BackgroundOil Rents, Corruption, and State Stability - Evidence From Panel Data Regressions
Fund, I. M. (2009) · IMF Working Paper · doi:10.5089/9781451874129.001 · Cited by 33
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“Marginal effects calculated and reported following Jann (2014) and Bischof (2017).”
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“The scholarly literature has debated whether such a curse exists (e.g., Humphreys M. 2005; Haber and Menaldo 2011; Cotet and Tsui 2013; Nillesen and Bulte 2014; Bazzi and Blattman 2014) and under what institutional conditions it may occur (e.g., Mehlum, Moene, and Torvik 2006; Robinson, Torvik, and…”
BackgroundMasi, T., Savoia, A., & Kunal Sen, A. (2020) · Working Paper Series · doi:10.35188/unu-wider/2020/767-5 · Cited by 31
“Cotet and Tsui (2013) contradict the statistical association between the value of oil reserves and the onset of civil war, and Haber and Menaldo (2011) find that increasing resource dependence does not promote dictatorship over the long run.”
BackgroundWeathering the storm: why was there no Arab uprising in Algeria?
Panta, G. D. (2017) · Democratization · doi:10.1080/13510347.2016.1275575 · Cited by 31
von Haldenwang, C., & Ivanyna, M. (2018) · Journal of International Development · doi:10.1002/jid.3346 · Cited by 31
“Haber and Menaldo (2011) even report the opposite effect of resource rents, but critics of their approach claim that it has conceptual and methodological flaws (see Andersen and Ross 2011).”
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Income growth, ethnic polarization, and political risk: Evidence from international oil price shocks
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Watts, S., Johnston, T., Lane, M., Mann, S., McNerney, M., & Brooks, A. (2018) · RAND Corporation eBooks · doi:10.7249/rr2447 · Cited by 30
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Kennedy, R., & Tiede, L. B. (2013) · International Studies Quarterly · doi:10.1111/isqu.12065 · Cited by 30
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“While the resource curse, in particular having oil reserves, has been commonly used to explain the democracy gap in the MENA region, Haber and Monaldo (2011) found no evidence of a negative link between resource reliance and democracy for 168 countries between 1972 and 1999.”
BackgroundClientelism, corruption and the rule of law
Lindberg, S. I., Bue, M. C. L., & Kunal Sen, A. (2022) · World Development · doi:10.1016/j.worlddev.2022.105989 · Cited by 41
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Resource shocks and human capital stocks – Brain drain or brain gain?
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“…optimal bandwidth minimizing the mean integrated squared error (MISE) if migrant selectivity would follow a Gaussian distribution and the Kernel used is normally distributed as well.6 The independent variable RESOURCES captures income generated in the oil sector based on Haber and Menaldo (2011).”
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Bader, J., & Daxecker, U. (2015) · Journal of Peace Research · doi:10.1177/0022343315593332 · Cited by 27
A Site-Level Market Model of the Antiquities Trade
Greenland, F., Marrone, J., Topçuoğlu, O., & Vorderstrasse, T. (2019) · International Journal of Cultural Property · doi:10.1017/s0940739119000018 · Cited by 27
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Liu, P. J., Peng, Y., Shi, Y., & Yang, J. (2021) · European Journal of Finance · doi:10.1080/1351847x.2021.1879888 · Cited by 27
“Further, countries' distance to the equator, population size, and density, along with the role of natural resources in the economy as discussed in Beck (2010) and Haber and Menaldo (2011) are used in the research to control for the geographic characteristics and economic structure of the countries.”
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The Norwegian Model of Oil Extraction and Revenues Management in Uganda
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“, a democracy or a dictatorship).[25] These different ideas suggest that the relationship between natural resources and economic performance still is an open question that deserves further work.”
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“Although Ross’s (2001) classic “oil impedes democratization” thesis has been questioned (Haber and Menaldo 2011; Liou and Musgrave 2014) 1Oakland University, Rochester, MI, USA Corresponding Author: Matthew D. Fails, Department of Political Science, Oakland University, 431 Varner Hall, 2201 N.…”
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Thomson, H. (2019) · Cited by 25
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American Bias in Global Security Studies Data
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Katô, J., & Tanaka, S. (2018) · European Journal of Political Research · doi:10.1111/1475-6765.12276 · Cited by 25
Social Mobility and Democratic Attitudes: Evidence From Latin America and Sub-Saharan Africa
Houle, C., & Miller, M. K. (2019) · Comparative Political Studies · doi:10.1177/0010414019830719 · Cited by 25
“…score (Marshall & Jaggers, 2014), the country’s gross domestic product (GDP) per capita (logged), its growth rate (using real 2000 dollars, from Haber & Menaldo, 2011; World Bank, 2015), and its level of economic inequality (Country Gini, interpolated and averaged, from Galbraith & Kum, 2003;…”
BackgroundOssowski, R., & Gonzáles-Castillo, A. (2012) · doi:10.18235/0011400 · Cited by 27
How State Capacity Helps Autocrats win Elections
Seeberg, M. B. (2021) · British Journal of Political Science · doi:10.1017/s0007123419000450 · Cited by 43
“I also control for ongoing Civil Wars in certain models (data from Haber and Menaldo 2011) to ensure that the links between state control and large victories, and state control and election violence, are not driven by regimes in which a civil war has limited the government’s control over territory…”
BackgroundVu, T. (2022) · Communist and Post-Communist Studies · doi:10.1525/cpcs.2022.1697969 · Cited by 24
Geopolitical alignment, outside options, and inward FDI: an integrated framework and policy pathways
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Disruptive Democratization: Contentious Events and Liberalizing Outcomes Globally, 1990–2004
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“Scholars have also discussed whether oil-producing countries are more resilient about pressures for democratization (Haber and Menaldo 2011; Herb 2005; Ramsay 2011; Ross 2012).”
BackgroundPolitical Budgetary Cycles in Autocratic Redistribution
Han, K. (2021) · Comparative Political Studies · doi:10.1177/00104140211036038 · Cited by 27
“Third, I add total resource revenues from oil, gas, coal, and metals as a percentage of GDP (Haber & Menaldo, 2011).”
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Government Turnover and the Effects of Regime Type
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“Numerous high-profile publications use it to investigate, for example, how income inequality (Houle, 2009), oil resources (Haber & Menaldo, 2011), and Islam (Potrafke, 2012) impact on democracy, or how democracy affects, for example, states’ credit access and credit ratings (Beaulieu, Gary, &…”
BackgroundDealing with Dictators: Negotiated Democratization and the Fate of Outgoing Autocrats
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“We include a variable for log GDP per capita from Haber and Menaldo (2011), since wealthier countries may have a greater capacity to punish former leaders.”
BackgroundMethodSelf-citationReforming civil–military relations
Kuehn, D., & Croissant, A. (2023) · Oxford University Press eBooks · doi:10.1093/oso/9780198803362.003.0004 · Cited by 24
Orrego, A. G. (2015) · Open Collections · doi:10.14288/1.0165764 · Cited by 23
The Two-step Model of Clustered Democratization
Houle, C., & Kayser, M. A. L. A. D. (2019) · Journal of Conflict Resolution · doi:10.1177/0022002719875565 · Cited by 24
“…control variables as in Houle, Kayser, and Xiang (2016): GDP per capita logged (Bolt et al. 2018); oil income per capita (Ross and Mahdavi 2015; Haber and Menaldo 2011)5; the proportion of the population who are Muslim, Catholic, and Protestant; ethnic and religious fractionalization; a dummy…”
BackgroundMethodThe moving global Everest: A new challenge to global ideal theory as a necessary compass
Nili, S. (2016) · European Journal of Political Theory · doi:10.1177/1474885116677480 · Cited by 24
“For only two examples, see Haber and Menaldo (2011); Ross (2012).”
BackgroundThe Political Origins of Institutional Weakness
Brinks, D. M., Levitsky, S., & Murillo, M. V. (2020) · Cambridge University Press eBooks · doi:10.1017/9781108776608.001 · Cited by 24
Japan's ultimately unaccursed natural resources-financed industrialization
Mørck, R., & Nakamura, M. (2017) · Journal of the Japanese and International Economies · doi:10.1016/j.jjie.2017.12.004 · Cited by 23
“…2015; Diamond and Mosbacher, 2013; Gilberthorpe and Papyrakis, 2015; Mendoza et al., 2015; Sachs and Warner, 1999, 2001) and criticism (e.g. Haber and Menaldo, 2011; Arezki and van der Ploeg, 2011; Bjorvatn et al., 2012; Cotet and Tsui, 2013; Davis, 2013; James, 2015; Smith, 2015; Havranek…”
Partisan politics, welfare states, and environmental policy outputs in the OECD countries, 1975–2005
Lim, S., & Duit, A. (2017) · Regulation & Governance · doi:10.1111/rego.12138 · Cited by 23
UN involvement and civil war peace agreement implementation
Maekawa, W., Arı, B., & Gizelis, T. (2018) · Public Choice · doi:10.1007/s11127-018-0602-9 · Cited by 23
“In addition, we control for population size, extracted from Haber and Menaldo (2011) dataset, because larger populations are associated with an increased likelihood of civil war onset (Collier and Hoeffler 2002, 2004) and higher levels of violence (Hultman et al. 2014).21 Civil war peace agreements…”
MethodVadlamannati, K., & de Soysa, I. (2020) · Energy Policy · doi:10.1016/j.enpol.2020.111719 · Cited by 23
Wright, J., & Frantz, E. (2017) · Research & Politics · doi:10.1177/2053168017719794 · Cited by 22
Economic Crisis, Natural Resources, and Irregular Leader Removal in Autocracies
Krishnarajan, S. (2019) · International Studies Quarterly · doi:10.1093/isq/sqz006 · Cited by 23
Metadata
- 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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