{"title":"Can Resource Windfalls Reduce Corruption? The Role of Term Limits","authors":"Ohad Raveh, Y. Tsur","doi":"10.2139/ssrn.3914574","DOIUrl":"https://doi.org/10.2139/ssrn.3914574","url":null,"abstract":"We find that, in democratic regimes with unlimited reelection, the answer to the question posed above is in the affirmative, contrasting a widely held view. The reason is that resource windfalls increase future graft prospects, motivating opportunistic incumbents to postpone their planned embezzlement, which in turn requires them to seek reelection and behave well in order to increase the reelection chances. Term limits mitigate, and may even reverse, this effect directly, by forcing incumbents that otherwise would seek reelection to step down, and indirectly, by increasing the potential graft that induces incumbents to seek reelection. We test the model's predictions using a panel of U.S. states over the period 1976-2007. Our identification strategy rests on constitutionally-entrenched differences in gubernatorial term limits, and geographically-based cross-state differences in natural resource endowments. Our baseline estimates point at a sizeable impact. We find that a one standard deviation increase in resource windfalls decreases the average corruption level in states with no term limits by 15%, but increases average corruption in states with term limits by 8%. These results suggest that the nature of political institutions is important for understanding the nexus between resource windfalls and corruption.","PeriodicalId":365445,"journal":{"name":"Political Economy - Development: Underdevelopment & Poverty eJournal","volume":"37 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126130999","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"States, Violence, and Technology: The Evolution of Conflict, 1950-2020","authors":"C. Mosk","doi":"10.2139/ssrn.3901109","DOIUrl":"https://doi.org/10.2139/ssrn.3901109","url":null,"abstract":"Has violence decreased on the international arena over the postwar period? This paper argues that it has but not necessarily for the reasons suggested by a number of prominent scholars who have addressed the issue of violence in recent years. The argument in this paper is that the main reason violence has declined is technological, mainly driven by the Internet, use of cell phones and global access to social media. Other reasons cited – states curbing violence, ideological shifts due to the acceptance of Enlightenment principles globally – are not compelling, While the trend in violence is largely technological the reasons why violence has persisted is due to ideological clashes: over imperialism and race linked through the pseudoscientific theory of eugenics; and the threat that secularism poses to the manipulation of religion for political purposes by state elites. These clashes have hardly disappeared in the postwar era. Indeed the existence of these ideological struggles offers a potential solution to the problem of cyberwarfare unleashed by technological changes in global communications.","PeriodicalId":365445,"journal":{"name":"Political Economy - Development: Underdevelopment & Poverty eJournal","volume":"208 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-08-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114741734","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Polina Detkova, Pavel Pronin, Andrey Tkachenko, A. Yakovlev
{"title":"The Changing Perceptions of Corruption during the COVID Pandemic in Russia","authors":"Polina Detkova, Pavel Pronin, Andrey Tkachenko, A. Yakovlev","doi":"10.2139/ssrn.3921612","DOIUrl":"https://doi.org/10.2139/ssrn.3921612","url":null,"abstract":"This paper studies the dynamic changes of corruption perceptions by public buyers and suppliers in Russia during the COVID pandemic. We conduct an online list experiment among the market participants in three waves: before the pandemic spread, during the strict lockdown, and after some stabilization. The paper shows a gap in how the market participants blame their side on corruption in public procurement. It is negligible before the COVID pandemic and significantly enlarges with the progress of the pandemic. We find that buyers’ perception of corruption among buyers is lower when the number of officially published new COVID cases is high. However, suppliers’ perception of corruption among suppliers is significantly higher when the excess deaths are high. These results indicate the changes in how market participants comprehend what interactions are corrupt. Some informal practices of buyers, which were forbidden before the COVID pandemic, are not perceived as abuse anymore. Suppliers, observing these revealed informal practices and becoming more dependent on public demand during the COVID pandemic, believe in the growth of corruption among suppliers.","PeriodicalId":365445,"journal":{"name":"Political Economy - Development: Underdevelopment & Poverty eJournal","volume":"34 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-06-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114848675","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Recaudo de impuestos nacionales y subnacionales en Colombia (Collection of National and Subnational Taxes in Colombia)","authors":"Juan José Vidarte González","doi":"10.18601/16577175.n28.10","DOIUrl":"https://doi.org/10.18601/16577175.n28.10","url":null,"abstract":"<b>Spanish Abstract:</b> En este documento se pretende realizar una aproximación de cómo ha sido el recaudo a nivel nacional y subnacional (municipal y departamental) en Colombia, identificando el comportamiento de los impuestos, y si existen brechas al comparar el recaudo de manera descentralizada, es decir, partiendo de las entidades territoriales frente a la Nación. Se realizó una revisión de literatura que permitiera entender de una manera más clara el contexto nacional y subnacional, y complementándolo con datos estadísticos de los ingresos tributarios administrados por la Dirección de Impuestos y Aduanas Nacionales (DIAN). Se pudo determinar que el recaudo nacional ha aumentado pero que sigue siendo relativamente bajo, y que los municipios tienen ingresos elásticos y los departamentos ingresos inelásticos <br><br><b>English Abstract:</b> This document aims to make an approximation of how the collection has been at the national and subnational levels in Colombia, identifying characteristics of tax behavior and if there are any gaps throughout the decentralization model. A theoretical review was carried out and allowed to understand in a more precise way the national and subnational context. Also, the statistics of the tax revenues administered by the DIAN were analyzed as well. It was possible to determine that the national collection has increased but that it is still relatively low, and that the municipalities have elastic revenues and the departments have inelastic revenues.","PeriodicalId":365445,"journal":{"name":"Political Economy - Development: Underdevelopment & Poverty eJournal","volume":"104 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-06-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131967202","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Legal Classification of Conflict in Nigeria (Boko Haram Case Study)","authors":"Oshoma Aduku","doi":"10.2139/ssrn.3861496","DOIUrl":"https://doi.org/10.2139/ssrn.3861496","url":null,"abstract":"International Humanitarian law set rules and principles that are necessary to guide the conduct of parties to a conflict. The law was not formulated to cover all kinds of conflicts and are only restricted to apply in the cases of International Armed conflict (IAC) and Non- International armed conflict (NIAC). In this article, we shall analyze IAC and NIAC with more focus on Non- International armed Conflict and thereafter, I shall consider in detail the conflict between Boko haram and Nigeria determining the specific kind of conflict it falls under International Humanitarian law, all necessary criterions for assessment will be fully analyzed. Going further, other recent issue bordering on its classification such as the extension of Boko haram conflict to neighboring countries will be assessed and then finally with a conclusion.","PeriodicalId":365445,"journal":{"name":"Political Economy - Development: Underdevelopment & Poverty eJournal","volume":"73 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-06-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126463092","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"How to Conceptualize the Resource Curse and Dutch Disease Theories in the Case of Azerbaijan? Initial and Negative Findings","authors":"I. Niftiyev","doi":"10.2139/ssrn.3857936","DOIUrl":"https://doi.org/10.2139/ssrn.3857936","url":null,"abstract":"Azerbaijan's economy is extractive industry-led and not well-diversified. A comprehensive understanding of the role of the oil industry in the Azerbaijani economy is still a desideratum. Azerbaijan's national economy was a popular case study for the theories such as the natural resource curse (NRS) and Dutch disease (DD); however, a conclusive statement is yet to be found. Many new questions arise as the impact of the crisis periods, institutions, and monetary indicators are being explored. This working paper is nothing more than experimentation results for the Azerbaijan economy within the NRS and DD theories. Surely, not everything can be achieved from the first trial and sound accomplishments need to be built on the shoulders of the negative results and failed hypotheses tests following the already existing analytical frameworks. Despite data issues and lack of proper theoretical conceptualizations of the Azerbaijan economy, this working paper reports the results of the Ordinary Least Squares (OLS) and Robust Least Squares (RLS) to orient the follow-up studies in the near future. Despite academia argues that nowadays linear relationships are hard to obtain, this working paper's main assumption is still a linear association among the variables of interest. Despite the results from this working paper are mixed, particular negative associations between the institutional quality measured via the several political, institutional, and governance indicators, and oil-related variables are present in the case of Azerbaijan between 1996–2019. To explain, although the negative impacts of the real effective exchange rate (REER), REER growth rates, the nominal effective exchange rate (NEER), and NEER growth rates were less than expected, oil prices and changes in oil prices played a great role (negative) in the output, employment, and returns on capital in the Azerbaijani economy. Moreover, particular negative associations between the oil-related variables, and institutional, political, and governance indicators are present, whereas the quantity and quality of the education in the Azerbaijan economy do not fully reflect any serious negative impacts. These experimental models possess a high amount of stability; however, they should be treated as initial starting points. The mentioned facts must be considered by the policymakers when the non-oil development of the Azerbaijani economy is being discussed.","PeriodicalId":365445,"journal":{"name":"Political Economy - Development: Underdevelopment & Poverty eJournal","volume":"50 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124331875","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
A. Memon, N. Ghumro, Suresh Kumar Oad Rajput, A. Memon
{"title":"Role of Foreign Banks Entry in Promoting Financial Inclusion - 'A Time series analysis of Five Permanent Members of UN Security Council'","authors":"A. Memon, N. Ghumro, Suresh Kumar Oad Rajput, A. Memon","doi":"10.2139/ssrn.3850307","DOIUrl":"https://doi.org/10.2139/ssrn.3850307","url":null,"abstract":"Purpose: Financial Inclusion is an essential determinant of bringing inclusive growth, which is promoted by the foreign bank entry as it increases the market competition and brings about greater outreach. Foreign Bank Entry has been considered as an impediment towards domestic markets, which is misunderstood. Foreign banks bring higher assets and provide credit to government-owned enterprises, Small and Medium Enterprises, and Micro Credit. Most developed countries have understood this phenomenon and have achieved significant financial Inclusion by liberalizing their banking industry. It is essential to conceptualize and measure the magnitude of factors, determinants, and antecedents for foreign bank entry promoting financial Inclusion. Methodology: An empirical research methodology has been adopted using the Normality test, data diagnostics for Regression, Unit Root Test, Bounds Co-Integration Test, Long Run Coefficients, and ARDL to explore the determinants of the entrance of foreign banks to promote financial Inclusion. Data has been taken from 5 developed countries, United Nations Security Council's permanent members with Veto Powers including (United Kingdom, United States, Russian Federation, France, and China) for 15 years from 2005-2018, making it sample 75 (n=75) for each of the eight variables under study. Findings: The results confirm that all the variables significantly affect the level or first-order difference in the financial Inclusion caused by foreign bank entry. Originality: This study is the author's original work and is not the exact replication of any prior study; this study provides empirical evidence and discusses the literature on Financial Inclusion and Foreign Bank Entry.","PeriodicalId":365445,"journal":{"name":"Political Economy - Development: Underdevelopment & Poverty eJournal","volume":"17 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-05-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124907424","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Corruption and Political Mobilization: Evidence from a Natural Experiment","authors":"Luke N. Condra, Austin L. Wright","doi":"10.2139/ssrn.3846431","DOIUrl":"https://doi.org/10.2139/ssrn.3846431","url":null,"abstract":"How do voters react to news of political corruption? Information about corruption may mobilize citizens to demand political and institutional reform, but existing empirical evidence is mixed. We argue that the effects of information about corruption on citizen attitudes and voting behavior is moderated by political efficacy (perceived influence of activism on political outcomes), which varies considerably across and within emerging democracies. To test the argument, we draw on survey data from Afghanistan collected during the 2010 Kabul Bank crisis, which revealed corruption in the formal banking system. The unanticipated scandal unfolded midway through the collection of the survey, allowing us to adopt a novel quasi-experimental approach. The scandal led to an increase in perceived corruption in government and heterogeneous effects on voting via a political efficacy mechanism. Our argument and results clarify an important puzzle in the cross national literature on corruption and voter mobilization.","PeriodicalId":365445,"journal":{"name":"Political Economy - Development: Underdevelopment & Poverty eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-05-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131383750","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Implications of Public Corruption for Local Firms: Evidence from Corporate Debt Maturity","authors":"M. Hassan, Md. Sydul Karim, Steven Kozlowski","doi":"10.2139/ssrn.3802879","DOIUrl":"https://doi.org/10.2139/ssrn.3802879","url":null,"abstract":"Using political corruption conviction data from the U.S. Department of Justice, we examine the impact of local corruption on firms’ debt maturity structure while exploring both demand-side and supply-side explanations. Our results support the demand-side story and indicate that firms located in high corruption areas utilize less short-term debt to mitigate liquidity and refinancing risks. Consistent with this, we find the effect is more pronounced among firms with smaller size, lower asset redeployability, and higher volatility. Our findings remain robust to the inclusion of an array of controls expected to influence debt maturity preferences as well as time, industry, and state fixed effects. Moreover, a seemingly unrelated regression approach, instrumental variables regression, propensity score matching, and placebo analyses corroborate our findings. Altogether, our results indicate that firms alter their debt maturity choices in response to local corruption to limit refinancing risk and the uncertainty created by corrupt government officials.","PeriodicalId":365445,"journal":{"name":"Political Economy - Development: Underdevelopment & Poverty eJournal","volume":"20 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-02-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116923089","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Corruption, Homelessness and Disasters","authors":"Michael Breen, Robert Gillanders, C. McMullan","doi":"10.2139/ssrn.3761757","DOIUrl":"https://doi.org/10.2139/ssrn.3761757","url":null,"abstract":"We argue that corruption causes greater homelessness following disasters because it weakens resilience, drains resources, and stifles recovery. We test this argument using data on homelessness from the Emergency Events Database (EM-DAT) and data on corruption in the construction sector from the World Bank's Enterprise Surveys. Using instrumental variables and other estimation techniques, we find that corruption is associated with significantly more people left homeless in the wake of disaster. Corruption in the construction sector is of particular concern, as once it is controlled for, the general level of corruption is not associated with post-disaster homelessness. These findings underline the importance of tackling corruption and poor construction practices in vulnerable communities. Furthermore, they highlight the need to mitigate the impact of corruption pre-disaster, plan for building collapse during the initial disaster response, and factor significant levels of homelessness and displacement into long term disaster recovery plans.","PeriodicalId":365445,"journal":{"name":"Political Economy - Development: Underdevelopment & Poverty eJournal","volume":"34 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-01-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114427701","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}