A note on revenue distribution patterns and rent-seeking incentive
- This paper presents a simple model of rent-seeking incentive to explain the emergence and dominance of the rapacious rent-seeking policies in a number of oil abundant developing and transition economies. The Hubbertian distribution of the commodity exports over time, the magnitude of these revenues, and the availability of offshore havens for the illicitly appropriated rent explain the shift from productive public policies to rapacious rent-seeking. In addition, we show that the existence of the well-functioning democratic institutions prior to the revenue boom precludes the emergence of rapacious rent-seeking institutions due to prohibitively high costs of rent-seeking. The paper complements the existing literature by delivering a novel theoretical rationale for the predisposition of the oil-rich countries to the resource curse.
| Author: | Elkhan Sadik-ZadaORCiDGND, Wilhelm LöwensteinORCiDGND |
|---|---|
| URN: | urn:nbn:de:hbz:294-60209 |
| URL: | http://econjournals.com/index.php/ijeep/article/view/6078/3658 |
| DOI: | https://doi.org/10.13154/294-6219 |
| Parent Title (English): | International Journal of Energy Economics and Policy |
| Document Type: | Article |
| Language: | English |
| Date of Publication (online): | 2018/07/24 |
| Date of first Publication: | 2018/02/01 |
| Publishing Institution: | Ruhr-Universität Bochum, Universitätsbibliothek |
| Tag: | Open Access Fonds hubbert curve; illicit appropriation; institutions; offshore havens; point-source resources; rent-seeking |
| Volume: | 8 |
| Issue: | 2 |
| First Page: | 196 |
| Last Page: | 204 |
| Note: | Article Processing Charge funded by the Deutsche Forschungsgemeinschaft (DFG) and the Open Access Publication Fund of Ruhr-Universität Bochum. |
| Institutes/Facilities: | Institut für Entwicklungsforschung und Entwicklungspolitik (IEE) |
| Dewey Decimal Classification: | Sozialwissenschaften / Wirtschaft |
| open_access (DINI-Set): | open_access |
| Licence (English): |  Creative Commons - CC BY 4.0 - Attribution 4.0 International |
