Finally, extractive industries tend to be capital intensive, often having to rely on foreign investment, leading to very little linkages to other domestic economic sectors, resulting in the states sluggish growth. ... Without property rights, rent-seeking leads to lawlessness and corruption, thus being detrimental to the state's economic growth. Michael Herb suggests in his book, No Representation without Taxation, that when a measure of development that excludes the effect of oil on the economy in place of GDP per capita in statistical analysis of the causes of the democratization, oi...

• Word Count: 1045
• Approx Pages: 4
• Has Bibliography
• Grade Level: Graduate