Politics and the Distinction between Israel and the Church

The distinction between Israel and the Church is at the heart of what it means to be a dispensationalist. Does this belief, which stems from literal interpretation of the Bible, make a difference in one’s view of politics?  For instance, some schemes of theology depend more heavily on the outlines of OT theology.  One example is the so-called theory of the “divine right of kings” which appears to be rooted in application of Old Testament texts in certain ways at various times in the Western world. This is a small part of the larger question of how the OT in general impacts our thinking for how the world should be run in the current Church Age.  What does a dispensational contribution to this question yield for our theology and practice? It would be nice to have someone address this question.