Аннотации:
Existing literature cannot explain why some rentier states, that is, states
dependent on revenues from exports of natural resources or foreign aid, experience
significantly more civil conflicts while others remain peaceful. The first part of this
thesis seeks to explain this puzzle by examining the role of government policies. In
particular, I argue that rentier states that invest a lot in welfare policy are better able to
prevent civil conflict because high welfare spending contributes to a better institution
quality, which in turn reduces uncertainty or information asymmetry between the
rentier government and rebels. Using data on rentier states from 1980 to 2015, I find
that higher welfare spending reduces risk of a civil conflict in rentier states.