Does Oil Hinder Social Spending? Evidence from Dictatorships, 1972–2008

  title={Does Oil Hinder Social Spending? Evidence from Dictatorships, 1972–2008},
  author={Jean Ji Yeon Hong},
  journal={Studies in Comparative International Development},
  • J. Hong
  • Published 24 March 2017
  • Economics
  • Studies in Comparative International Development
This paper examines the effects of natural resource abundance on social spending in dictatorships. Natural resources, particularly oil, provide authoritarian leaders with economic rents without widescale labor force participation. I argue that dependence on natural resource production thus reduces dictators’ incentive to invest in human capital, which is reflected in lower levels of social spending. Using a panel dataset of authoritarian regimes between 1972 and 2008, I find that oil abundance… 
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