Staff Publications

Staff Publications

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    'Staff publications' is the digital repository of Wageningen University & Research

    'Staff publications' contains references to publications authored by Wageningen University staff from 1976 onward.

    Publications authored by the staff of the Research Institutes are available from 1995 onwards.

    Full text documents are added when available. The database is updated daily and currently holds about 240,000 items, of which 72,000 in open access.

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Record number 425363
Title On the looting of nations
Author(s) Sarr, M.; Bulte, E.H.; Meissner, C.; Swanson, T.
Source Public Choice 148 (2011)3-4. - ISSN 0048-5829 - p. 353 - 380.
DOI http://dx.doi.org/10.1007/s11127-010-9659-9
Department(s) Development Economics Group
WASS
Publication type Refereed Article in a scientific journal
Publication year 2011
Keyword(s) political-economy - capital inflows - resource curse - sovereign debt - growth - institutions - model - countries - openness - rule
Abstract We develop a dynamic discrete choice model of an unchecked ruler making decisions regarding the development of a resource rich country. Resources serve as collateral and facilitate the acquisition of loans. The ruler chooses either to stay in power while facing the risk of being ousted, or loot the country's riches by liquefying the resources through lending. We show that unstructured lending from international credit markets can create incentives to loot the country; and an enhanced likelihood of looting causes greater political instability, and diminishes growth. Using a treatment effects model, we find evidence that supports our predictions.
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