The dynamic impact among oil dependence volatility, the quality of political institutions, and government spending

This paper empirically examines the direct and indirect effect of role democracy, and, in turn, oil dependence volatility on governmental expenditure exporting countries. To achieve this aim, we apply a panel Vector Auto-Regressive (PVAR) model along with impulse response functions from period 1983 to 2016. The findings show that quality political institutions, it is observed democratic countries an increase leads government expenditure. In contrast, non-democratic countries, governments respond fluctuating between positive negative depending institutions; more some attributes democracy are seen, greater difference them can be attributed variation institutional quality. Therefore, improvement strategic risk planning together transparency could lead improvement.