Corruption as a Local Advantage: Evidence from the Indigenization of Nigerian Oil
研究了尼日利亚石油行业本土化政策如何通过政治关系使本地企业减少石油盗窃、增加产量,尽管质量较低,但总体收益最多占GDP的2.3%到5.7%。
Multinationals in the extractive sectors of weak states face resource theft by armed groups. Criminality is often abetted by state corruption, even though firms are willing to pay for protection. I study indigenization in Nigeria’s oil sector, which increased local firms’ participation substantially. Despite lower quality, local firms increase output by reducing oil theft. A bargaining model illustrates that political connections align law enforcement incentives, solving commitment problems. Data on law enforcement raids show that local firms receive preferential protection. Connections to military elites drive the local advantage. The aggregate gains from indigenization are at most between 2.3 and 5.7 percent of GDP.