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Oil bonanza and the composition of government expenditure
Economics of Governance ( IF 0.781 ) Pub Date : 2021-01-21 , DOI: 10.1007/s10101-020-00246-3
Keisuke Okada , Sovannroeun Samreth

Government behavior can be affected by natural resource benefits. Benevolent government and political leaders may use them to improve the welfare of the people, whereas others may use them for their own interests. To examine the effects of oil bonanza on government behavior comprehensively, this study investigates how giant oilfield discoveries affect the size and composition of government expenditure using data from 168 countries between 1972 and 2008. We find weak evidence that giant oilfield discoveries increase total government expenditure significantly in the medium and long term, whereas their effects are more evident in the short term, especially when controlling for other factors affecting total government expenditure. We also obtain evidence that democracy plays a mediating role in these effects; if the democracy level in a country is consolidated, the size of total government spending does not increase even when discovering giant oilfields. Considering each category of government expenditure, giant oilfield discoveries increase expenditure on health and social protection significantly, whereas they decrease educational expenditure. Furthermore, giant oilfield discoveries decrease expenditure on economic affairs and defense and increase general public services and public order and safety. Finally, giant oilfield discoveries increase the net implicit gasoline subsidy in the long term. These findings enhance our understanding of the effects of oil bonanza on government behavior.



中文翻译:

石油大富翁与政府支出的构成

政府行为会受到自然资源利益的影响。仁慈的政府和政治领导人可以利用它们来改善人民的福利,而其他人则可以利用它们来实现自己的利益。为了全面考察石油大富翁对政府行为的影响,本研究使用1972年至2008年间168个国家的数据,调查了大型油田发现如何影响政府支出的规模和构成。我们发现证据不足,表明大型油田发现显着增加了政府总支出从中长期来看,其影响在短期内更为明显,尤其是在控制影响政府总支出的其他因素时。我们还获得证据表明民主在这些影响中起着中介作用。如果巩固一个国家的民主水平,即使发现大型油田,政府总支出的规模也不会增加。考虑到每类政府支出,大型油田的发现显着增加了健康和社会保护方面的支出,而它们却减少了教育支出。此外,巨大的油田发现减少了经济事务和国防开支,并增加了一般公共服务以及公共秩序和安全。最后,从长远来看,巨大的油田发现增加了隐性汽油的净补贴。这些发现加深了我们对石油财富对政府行为影响的理解。巨大的油田发现显着增加了在健康和社会保护方面的支出,而却减少了教育支出。此外,巨大的油田发现减少了经济事务和国防开支,并增加了一般公共服务以及公共秩序和安全。最后,从长远来看,巨大的油田发现增加了隐性汽油的净补贴。这些发现加深了我们对石油财富对政府行为影响的理解。巨大的油田发现显着增加了在健康和社会保护方面的支出,而却减少了教育支出。此外,巨大的油田发现减少了经济事务和国防开支,并增加了一般公共服务以及公共秩序和安全。最后,从长远来看,巨大的油田发现增加了隐性汽油的净补贴。这些发现加深了我们对石油财富对政府行为影响的理解。从长远来看,巨型油田的发现增加了隐性汽油的净补贴。这些发现加深了我们对石油财富对政府行为影响的理解。从长远来看,巨型油田的发现增加了隐性汽油的净补贴。这些发现加深了我们对石油财富对政府行为影响的理解。

更新日期:2021-01-21
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