Why Do Some Oil-Producing Countries Succeed in Democracy While Others Fail?

Empirical studies examining the effect of oil on democracy have shown contradictory results. This paper offers an explanation. In measuring the number of years between the beginning of oil production and the attainment of political independence in oil-producing countries, we found that the greater the number of years, the higher the level of democracy ceteris paribus. The types of resources exploited in the colonial period were shown to have influenced institutions' nature and the formation of elite, which acts to prevent subsequent political reforms. This pattern is mitigated in countries that started producing oil far away from their independence.