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Natural Resource Diversity and Democracy

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  • Mike Smart

Abstract

The well‐known link between oil and autocracy is an example of a more general phenomenon. I introduce a non‐commodity‐specific predictor of autocracy based on the Herfindahl–Hirschman Index of a country’s natural resource exports. It performs no worse than the export share of oil, and better than the export share of primary commodities in explaining observed levels of democratisation. Empirical evidence is presented for a causal chain from diversity of natural resources and educational attainment to democratisation, and from democratisation to per capita GDP.

Suggested Citation

  • Mike Smart, 2009. "Natural Resource Diversity and Democracy," Economic Papers, The Economic Society of Australia, vol. 28(4), pages 366-375, December.
    • Handle: RePEc:bla:econpa:v:28:y:2009:i:4:p:366-375
    DOI: 10.1111/j.1759-3441.2010.00046.x
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    3. Jonathan Isham & Michael Woolcock & Lant Pritchett & Gwen Busby, 2005. "The Varieties of Resource Experience: Natural Resource Export Structures and the Political Economy of Economic Growth," The World Bank Economic Review, World Bank, vol. 19(2), pages 141-174.
    4. Xavier Sala-i-Martin & Arvind Subramanian, 2013. "Addressing the Natural Resource Curse: An Illustration from Nigeria," Journal of African Economies, Centre for the Study of African Economies, vol. 22(4), pages 570-615, August.
    5. Bulte Erwin & Damania Richard, 2008. "Resources for Sale: Corruption, Democracy and the Natural Resource Curse," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-30, February.
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