Jurnal Ekonomi & Studi Pembangunan
Vol 22, No 2: October 2021

Do Resource-Rich Provinces Perform Lower Democratization Progress? Estimating Oil Impact on Democracy Indicators in Indonesia

Hilmawan, Rian (Unknown)



Article Info

Publish Date
22 Oct 2021

Abstract

This study examined whether oil dependence affected democracy quality by referring to provincial-level data in Indonesia. While physical quantity production was used to measure oil dependence, democracy was measured based on the Indonesian Democracy Index (IDI). Static panel data analysis was employed to control unobserved time-invariant characteristics of each province, including a robust Driscoll and Kraay (D-K) standard error model for the general forms of cross-sectional dependence when dealing with panel observation. The results showed that oil-dependent provinces tended not to have weak democratic qualities. The effects were also robust when democracy was separated into three main elements of the IDI: political rights, civil liberties, and democratic institutions, or when an alternative measure of dependency was used. Interestingly, this study found that oil dependence had a stronger effect on democracy in provinces with a lack of oil than in Sumatra and Kalimantan, globally known as dominant resource locations.

Copyrights © 2021






Journal Info

Abbrev

esp

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Ekonomi & Studi Pembangunan (JESP) focuses on research papers relating to development economics and multidisciplinary concern to systemic problems in developing countries particularly using quantitative or theoretical work in which novelty is essential. JESP does not publish manuscripts in ...