“…Moreover, existing studies do not consider a crucial aspect at the heart of our analysis: the interplay between natural resources rents and the quality of institutions. A number of papers argue, and empirically demonstrate, that institutions can mitigate or even reverse the resource curse (e.g., Melhum et al, 2006;Brunnschweiler, 2008;Boschini et al, 2007;El Anshasy and Katsaiti, 2013;Hodler, 2010, 2014;Ebeke et al, 2015;Omgba, 2015). 4 Two explanations have been put forward to understand the role of institutions: the rent-seeking model (Tornell and Lane, 1999;Torvik, 2002;Melhum et al, 2006) and the patronage model (Robinson et al, 2006;Caselli and Cunningham, 2009).…”