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natural resources rents may reduce incentives to invest in fiscal capacity. However, political institutions that limit rulers … mainly through institutions that make the tax system accountable and transparent. Thus it is possible to develop both fiscal …
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This paper theoretically and empirically investigates the effect of natural resource rents on the process of economic liberalization and a potential moderating effect of the level of democracy. A simple political-economic model is developed in which the government in an autocratic country faces...
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