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This paper examines how the dismantling of coercive institutions associated with the end of apartheid in South Africa in 1994 affected the distribution of rents from natural resource exports. It identifies the interplay between coercive institutions and natural resource rents as an important driver of local development. Using data from the 1996 census, the paper documents large income gaps between communities located just-inside and just-outside the former self-governing territories set aside for black inhabitants. Examining relative changes between 1996 and 2011, the paper finds that spatial income convergence was considerably stronger among marginalized communities with higher initial exposure to resource rents. These results accord with standard bargaining theory in which the dismantling of coercive institutions improves the negotiating position of unionized workers in the mining industry.

Financial development has a major role in the sustainable economic growth of Central and Eastern European emerging countries, particularly after their political and structural changes. These changes required a reform of financial sectors of these countries, such as capital market development, banking privatisations and trade openness (TO). Moreover, emerging countries have opened too quickly to foreign competitors. Importantly, TO without financial openness is unlikely to contribute financial development. Therefore, this paper deals with banking sector analysis of the CEE emerging countries, which are still more bank based. Empirical results will show as which macroeconomic variables affect banking sector development in CEE countries. Different indicators of banking sector development will be used. Panel technique will be used to analyse panel data from 16 CEE countries during the period 1994–2007. Parameters of the panel data model will be estimated using GMM method.