On the looting of nations
TLDR
The authors developed a dynamic discrete choice model of an unchecked ruler making decisions regarding the development of a resource rich country, and showed that unstructured lending from international credit markets can create incentives to loot the country; and an enhanced likelihood of looting causes greater political instability, and diminishes growth.Abstract:
We develop a dynamic discrete choice model of an unchecked ruler making decisions regarding the development of a resource rich country. Resources serve as collateral and facilitate the acquisition of loans. The ruler chooses either to stay in power while facing the risk of being ousted, or loot the country’s riches by liquefying the resources through lending. We show that unstructured lending from international credit markets can create incentives to loot the country; and an enhanced likelihood of looting causes greater political instability, and diminishes growth. Using a treatment effects model, we find evidence that supports our predictions.read more
Citations
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The resource curse exorcised: Evidence from a panel of countries
TL;DR: The authors evaluated the impact of major natural resource discoveries since 1950 on GDP per capita using panel fixed-effects estimation and resource discoveries in countries that were not previously resource-rich as a plausibly exogenous source of variation.
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Military Expenditure, Economic Growth and Heterogeneity
J. Paul Dunne,Nan Tian +1 more
TL;DR: This article examined the impact of military expenditure on economic growth on a large balanced panel, using an exogenous growth model and dynamic panel data methods for 106 countries over the period 1988-2010.
Natural Resource Abundance and Economic Growth Revisited
Chong-Sup Kim,Yeon-Sil Kim +1 more
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References
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Posted Content
International Data on Educational Attainment Updates and Implications
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Growth Empirics: A Panel Data Approach
TL;DR: In this article, a panel data approach is advocated and implemented for studying growth convergence, and the familiar equation for testing convergence is reformulated as a dynamic panel data model, and different panel data estimators are used to estimate it.
Book
The Logic of Political Survival
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Dictatorship, Democracy, and Development.
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