Oil Wealth and Property Rights

We empirically examine the impact of oil wealth on property rights protection for a sample 156 countries between 1960 and 2014. find that higher levels result in weaker private rights. This is robust to different instrumental-variable approaches operationalizations economic institutions. argue creates an elite wields disproportionate political power over society. The uses this buy support weak from their supporters (the selectorate), while also punishing opposition (i.e., non-selectorate). Indeed, we provide evidence leads more clientelistic policies (benefitting selectorate) but punitive measures (e.g., form exclusion state jobs) likely administered non-selectorate. favors because blocks potential challengers, allowing consolidation perpetuation status quo.