The Political Economy of Oil Production in Latin America

Manzano, Osmel; Monaldi, Francisco

doi:10.1353/eco.0.0018

Cited by 39 publications

(36 citation statements)

References 28 publications

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“…The first looks at the link between natural resource abundance and the quality and effectiveness of political institutions. The underlying idea is that abundance of a commodity generates rents that might favour rent‐seeking behaviours, corruption, conflicts and/or political instability which have adverse effects on long‐term growth and distribution (Duncan, 2006; Guriev et al, 2002; Isham et al, 2003; Lane & Tornell, 1996; Manzano & Monaldi, 2008; Tornell & Lane, 1999). The second channel focuses on the fact that natural resource abundance might expose countries to price volatility (Sala‐i‐Martin & Subramanian, 2003).…”

Section: Literature Reviewmentioning

confidence: 99%

The distributive impact of terms of trade shocks: The case of the oil price changes in Russia

Bussolo

Luongo

2020

Econ of Transit and Inst Chang

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The halving of oil prices, during a short period between 2014 and 2015, has generated major terms of trade losses for oil exporting countries. This terms of trade shock has economywide effects and significant distributive impacts. This paper, using a macro-micro simulation model, describes and quantifies the channels of transmission from the drop of oil prices, to changes in welfare distribution at the household level for the case of the Russian Federation. The oil price reduction generates a reverse Dutch disease impacting sectoral employment, factor returns and consumption prices. It causes a contraction of employment and wages in more skill-intensive (non-tradable) sectors, and a reduction in consumption prices that is more pronounced for non-food than for food goods. When these shifts are mapped to changes in incomes at the micro level, all households are affected. Poverty rates increase by 1 to 4 percentage points, depending on the poverty line used.At the US$ 10 a day threshold, 4.1 million additional people fall into poverty. Along the consumption distribution, richer people are affected more than those in the bottom 40%.However, this minor progressive impact may be reversed due to increases in unemployment and cuts in social programmes.

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Section: Literature Reviewmentioning

confidence: 99%

The distributive impact of terms of trade shocks: The case of the oil price changes in Russia

Bussolo

Luongo

2020

Econ of Transit and Inst Chang

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“…Other works looking at the oil sector reached similar results (Guriev et al 2008). Furthermore, the nationalization of the oil industry becomes particularly attractive when concession contracts do not allow taxes to capture the windfalls of rapidly increasing international prices (Manzano and Monaldi 2008).…”

Section: The Academic Debate About Nationalizationmentioning

confidence: 99%

Renationalization in Argentina, 2005–2013

Manzetti¹

2016

Lat. Am. polit. soc.

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Since 2002, government nationalizations and contractual breaches in general around the world have surged. South America has witnessed a wave of nationalizations of private enterprises, mostly foreign. Some analysts contend that this trend is shaped by the left‐wing ideological orientation of the governments, whereas others argue that a more robust explanation is the combination of economic pressure and constraint factors. This article contributes to the debate by using a nuanced institutional analytical framework based on the concept of company versus government opportunism, applied to the recent nationalization of previously privatized companies. It examines Argentina, a country that in the last two decades has seen radical policy reversals, from sweeping privatization of state‐owned enterprises in the 1990s to a renationalization effort with some of the same companies in the early 2000s.

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“…Various authors have described how NOCs serve as sources of corrupt practices and vehicles to buy political consent in rentier states. Analyzing the oil production in Latin America, Manzano and Monaldi (2008), for example, note that national oil companies such as Mexican PEMEX often become a clientelistic instrument of the ruling party, providing rents that may be used to overemploy and overpay party supporters. McPherson and MacSearraigh (2007) describe how NOCs such as the Nigerian National Petroleum Corporation (NNPC) or Indonesia's Pertamina are misused to buy off political opponents.…”

Section: Resource Ownership Patterns and Intrastate Conflictmentioning

confidence: 99%

Oil, Natural Gas, and Intrastate Conflict: Does Ownership Matter?

Wegenast

2015

International Interactions

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The impact of natural resources on intrastate violence has been increasingly analyzed in the peace and conflict literature. Surprisingly, little quantitative evidence has been gathered on the effects of the resource-ownership structure on internal violence. This article uses a novel data set on oil and natural gas property rights, covering 40 countries during the period 1989-2010. The results of regression analyses employing logit models reveal that the curvilinear effect between hydrocarbon production and civil conflict onset-often found in previous studies-only applies to countries in which oil and gas is extracted by state-owned companies. The findings suggest that only state-controlled hydrocarbon production might entail peace-buying mechanisms such as specific clientelistic practices, patronage networks, welfare policies, and/or coercion. At the same time, it seems that greed and grievance are more pronounced whenever resources lie in the hands of the state. Exploring the within-country variation, further analyses reveal that divergent welfare spending patterns are likely to be one causal channel driving the relationship between resource ownership and internal violence.

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The Political Economy of Oil Production in Latin America

Cited by 39 publications

References 28 publications

The distributive impact of terms of trade shocks: The case of the oil price changes in Russia

The distributive impact of terms of trade shocks: The case of the oil price changes in Russia

Renationalization in Argentina, 2005–2013

Oil, Natural Gas, and Intrastate Conflict: Does Ownership Matter?

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