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Natural resources, democracy and corruption

Bhattacharyya, Sambit; Hodler, Roland


We study how natural resources can feed corruption and how this effect depends on the quality of the democratic institutions. Our game-theoretic model predicts that resource rents lead to an increase in corruption if the quality of the democratic institutions is relatively poor, but not otherwise. We use panel data covering the period 1980-2004 and 124 countries to test this theoretical prediction. Our estimates confirm that the relationship between resource rents and corruption depends on the...[Show more]

CollectionsANU Research Publications
Date published: 2010
Type: Journal article
Source: European Economic Review
DOI: 10.1016/j.euroecorev.2009.10.004


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