State-sponsored development, oil and democratization

This study seeks to examine the relationship between natural resource revenues, most notably oil-generated wealth, and democratization. I show that the prevalent theoretical framework fails to explain the variation in rentier states' level of democracy. The empirical evidence from the fixed-effects regression models for the 1972–1999 period poses a challenge to the currently prevalent ‘resource curse’ hypothesis and suggests the possibility of a positive relationship between oil wealth and democratization.