Oil and Democracy - An interactive approach

This study investigates what effect oil has on democracy and if this effect changes when we interact oil with different regions and three different causal mechanisms. To examine this, we use a panel data model covering 156 countries between years of 1970-2014, and two different estimation techniques. The main findings of this thesis is that there is some evidence for that oil has a negative effect on democracy in the long-run but that the results for when we interact oil with regions and the three causal effects is ambiguous at best.This study investigates what effect oil has on democracy and if this effect changes when we interact oil with different regions and three different causal mechanisms. To examine this, we use a panel data model covering 156 countries between years of 1970-2014, and two different estimation techniques. The main findings of this thesis is that there is some evidence for that oil has a negative effect on democracy in the long-run but that the results for when we interact oil with regions and the three causal effects is ambiguous at best