Exploring Economic Performance of Resource-Rich Countries by Separating their Political Systems

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Jahandideh, Mahsa | 2011

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Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 41994 (44)
University: Sharif University of Technology
Department: Management and Economics
Advisor(s): Nili, Masoud
Abstract:
Economic performance of resource rich countries is related to their political systems. In this research, consistent to Hosseini (1388), we develop a theoretical model in which we classify the political systems of those countries to four systems based on corruption, myopic behavior of the incumbent, ideological bias of people, and the popularity shocks in elections. We show that in a fixed institutional framework, democracy leads to higher welfare for people and better economic performance. However, in a society with low corruption, high political convergence, and low popularity shocks both democracy and dictatorship maximize the social welfare in the model
Keywords:
Natural Resource Curse ; Democracy ; Autocracy

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