Booming commodity prices generate large foreign currency inflows for exporting nations. This column argues that in countries with executive constraints and political competition windfalls from commodity booms lead to a significant reduction in external debt. In autocratic regimes, on the other hand, the windfalls are used to increase consumption expenditures.
Rabah Arezki, Markus Brückner, Friday, June 15, 2012 - 00:00
Toke S. Aidt, Martin Gassebner, Tuesday, December 16, 2008 - 00:00
Are autocracies less integrated in the world economy than democracies? This column provides an overview of recent research on this question and argues that autocratic states trade less with the rest of the world than democracies. This may be one reason why many autocracies have failed to develop economically.