Scandinavian Working Papers in Economics

Working Papers in Economics,
University of Gothenburg, Department of Economics

No 415: Natural Resource Dependency and Quality of Government

Mette Anthonsen, Åsa Löfgren () and Klas Nilsson
Additional contact information
Mette Anthonsen: The Quality of Government Institute, Department of Political Science University of Gothenburg, Postal: Box 640, SE 40530 GÖTEBORG
Åsa Löfgren: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: Box 640, SE 40530 GÖTEBORG
Klas Nilsson: Department of Political Science University of Gothenburg, Postal: Box 640, SE 40530 GÖTEBORG

Abstract: This paper introduces quality of government rather than regime type as dependent variable in studies of the political effects of natural resources. It consists of two parts. First, it theorizes the role of fiscal dependency of oil and gas rents in relation to three different dimensions of quality of government; low corruption, bureaucratic quality and legal impartiality. Second, it finds significant, negative effects of oil and gas rent dependency on all three dimensions of quality in a sample of 139 states in the period 1984 to 2006. The results hold for inclusion of control variables such as regime type, income, region and religion.

Keywords: Oil; gas; corruption; bureaucracy; legal impartiality; large-N

JEL-codes: N50; O13; O43; P48; Q34

39 pages, December 4, 2009

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