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The illusory leader: natural resources, taxation and accountability

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  • Eoin McGuirk

Abstract

This paper proposes and tests a mechanism through which natural resources can affect democracy. I posit that, in the presence of high natural resource rents, leaders lower the burden of taxation on citizens in order to reduce the demand for democratic accountability. The theory is corroborated using micro-level data from public opinion surveys across 15 sub-Saharan countries, in addition to country-level data on natural resource rents. Results are robust to a range of alternative specifications. A supplementary analysis reveals that, consistent with the two-period model proposed, the effects are more acute closer to national elections. Copyright Springer Science+Business Media, LLC 2013

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  • Eoin McGuirk, 2013. "The illusory leader: natural resources, taxation and accountability," Public Choice, Springer, vol. 154(3), pages 285-313, March.
    • Handle: RePEc:kap:pubcho:v:154:y:2013:i:3:p:285-313
    DOI: 10.1007/s11127-011-9820-0
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    More about this item

    Keywords

    Democracy; Political economy; Natural resources; Curses; Africa; D73; O13; O55;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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