Wednesday, March 10, 2010

Political Consequences of Natural Resources

Vox posts an interesting summary of a public choice study, « The political resource curse ». Excerpt:

« Is the discovery of natural resources necessarily a good thing? Examining data from Brazil, this column finds that a 10% windfall in government revenues leads to a 12 percentage point increase in corruption and a 3 percentage point reduction in the probability that politicians have a degree. The chance that an incumbent is reelected raises by over 4 percentage points. »

Read the whole paper here.

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