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Institutions and the resource curse
TLDR
In this article, the authors claim that the main reason for diverging experiences is differences in the quality of institutions, and they test this theory building on Sachs and Warner's influential works on the resource curse.Abstract:
Countries rich in natural resources constitute both growth losers and growth winners. We claim that the main reason for these diverging experiences is differences in the quality of institutions. More natural resources push aggregate income down, when institutions are grabber friendly, while more resources raise income, when institutions are producer friendly. We test this theory building on Sachs and Warner's influential works on the resource curse. Our main hypothesis: that institutions are decisive for the resource curse, is confirmed. Our results are in sharp contrast to the claim by Sachs and Warner that institutions do not play a role.read more
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The Rule of Law and Constitutionalism in Muslim Countries
TL;DR: In this paper, a new Islamic State Index was constructed to measure the influence Islam has on a society and its political and legal system, finding that Muslim influence is in conflict with the independence of the judiciary and nondiscriminatory legal institutions with respect to gender and religion.
Posted Content
The political economy of public income volatility: With an application to the resource curse
TL;DR: The authors developed a model of the political consequences of public income volatility and showed that making income uncertain creates specific new effects, such as reducing the benefit of being in power, making policy more efficient.
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Curse or blessing: how does natural resource dependence affect city-level economic development in China?
TL;DR: Based on the resource curse theory, this article used panel data for 256 prefecture-level cities in China from 2003 to 2016 to test the relationship and mechanism between natural resource dependence and economic development.
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Can internet development help break the resource curse? Evidence from China
Zhiqiang Gai,Yunxia Guo,Yu Hao +2 more
TL;DR: Wang et al. as mentioned in this paper conducted an empirical analysis on the sample data of 30 provincial-level administrative regions in China from 2006 to 2017 and found that there is indeed a resource curse problem in some provinces in China.
References
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Why Do Some Countries Produce so Much More Output Per Worker than Others
TL;DR: This paper showed that differences in physical capital and educational attainment can only partially explain the variation in output per worker, and that a large amount of variation in the level of the Solow residual across countries is driven by differences in institutions and government policies.
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Greed and Grievance in Civil War
Paul Collier,Anke Hoeffler +1 more
TL;DR: Collier and Hoeffler as discussed by the authors compare two contrasting motivations for rebellion: greed and grievance, and show that many rebellions are linked to the capture of resources (such as diamonds in Angola and Sierra Leone, drugs in Colombia, and timber in Cambodia).
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Institutions and economic performance: cross‐country tests using alternative institutional measures
Stephen Knack,Philip Keefer +1 more
TL;DR: The authors compared more direct measures of the institutional environment with both the instability proxies used by Barro (1991) and the Gastil indices, by comparing their effects both on growth and private investment.
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Natural Resource Abundance and Economic Growth
TL;DR: The authors showed that countries with a high ratio of natural resource exports to GDP tended to have low growth rates during the subsequent period 1971-89, even after controlling for variables found to be important for economic growth, such as initial per capita income, trade policy, government efficiency, investment rates, and other variables.
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The curse of natural resources
TL;DR: The authors showed that there is little direct evidence that omitted geographical or climate variables explain the curse of natural resources, or that there was a bias resulting from some other unobserved growth deterrent.