The Spatial Dimensions of State Fiscal Capacity The Mechanisms of International Influence on Domestic Extractive Efforts

Abstract

This paper expands traditional predatory theory approaches to state fiscal capacity by adopting spatial analytical reasoning and methods. Although previous work in the predatory theory tradition has often incorporated interdependent external influences, such as war and trade, it has often done so in a way that maintains a theoretical and empirical autonomy of the state. Theoretically, we suggest four mechanisms (coercion, competition, learning, and emulation) that operate to channel information through interstate rivalry and territorial contiguity, trade networks, and the political space associated with regime type and intergovernmental organization membership. We test our predictions using a multi-parametric spatio-temporal autoregressive model with four spatial lags capturing the four mechanisms. Our empirical results provide support for the coercion and learning mechanisms.