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Do “Resource‐Cursed States” Have Lower Levels of Social and Institutional Trust? Evidence from Africa and Latin America
Author(s) -
Ishiyama John,
Martinez Melissa,
Ozsut Melda
Publication year - 2018
Publication title -
social science quarterly
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.482
H-Index - 90
eISSN - 1540-6237
pISSN - 0038-4941
DOI - 10.1111/ssqu.12474
Subject(s) - latin americans , language change , revenue , resource (disambiguation) , economics , natural resource , survey data collection , development economics , business , economic growth , political science , finance , art , computer network , statistics , literature , mathematics , computer science , law
Objective This study examines whether a state's abundance of natural resource wealth, such as oil or gas, leads to lower levels of social and institutional trust than in countries that are not as “cursed” with resources. Methods To test this we use survey data from both the Afrobarometer survey (2008–2009) and comparable data on Latin America from the Latin American Public Opinion Project (LAPOP), using 44 countries, as well as subnational data from two large oil‐producing countries (Nigeria and Mexico). Results Using multilevel logit analysis we find that individuals in countries that are oil and gas producers are less likely to exhibit high levels of social or institutional trust than individuals in countries that are not oil or gas producers. However, when examining oil‐producing regions within Nigeria and Mexico, we find that individuals in such regions tend to express relatively higher levels of individual social and institutional trust than regions that are not oil producers. Conclusion These findings can be explained by the differential effects of oil and gas wealth—at the national level, oil and gas wealth promotes corruption and a general erosion of both institutional and interpersonal trust, especially for those who live in regions that do not directly benefit from oil and gas revenues. However, in regions within countries, people who reside in such regions are more likely to directly benefit from the economic spoils and patronage derived from resource revenues.