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Institutions and the resource curse
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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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Resource booms and economic development: the time series dynamics for 17 oil-rich countries
Benhua Yang,Yewfoong Lam +1 more
TL;DR: In this article, the authors examined the time series properties of oil prices and economic development for 17 oil-rich developing countries and found that in the majority of cases oil booms are followed by increases in both GDP per capita and investment.
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More oil, more or less taxes? New evidence on the impact of resource revenue on domestic tax revenue
TL;DR: In this article, the authors test the hypothesis that increased resource revenue is offset by a decrease in domestic non-resource tax revenue by exploiting an exogenous variation arising from giant oil and gas discoveries and find that giant oil discoveries lead to temporarily higher tax collection that peaks when production starts.
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The Zambian Resource Curse and its influence on Genuine Savings as an indicator for “weak” sustainable development
Adrian Boos,Karin Holm-Müller +1 more
TL;DR: In this paper, the authors study the relationship between the most discussed determinants causing the resource curse in Zambia and the country's sustainable development rate and show that all theoretical relationships between the GS rates of a country and RC determinants such as consumption behavior, volatile world market prices, the so-called Dutch disease as well as political and institutional structures apply to Zambia between 1964 and 2010: an extreme dependency on copper exports and insufficient reinvestments of income from the depletion of Zambia's natural capital constitutes one of the main reasons for slow growth and negative GS until the copper price
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Natural resource rents, political regimes and terrorism in Africa
TL;DR: In this article, the authors add to the stock of existing literature on the supposed crises-inducing role of natural resource rents, by linking same to political regime and growth of terrorist attacks for a panel of forty-nine (49) African economies for the period, 1980-2012.
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Challenges of a resource boom: review of the literature
TL;DR: A review of the literature shows that resource booms have a broad impact on economy, society and politics of the respective countries as discussed by the authors, and that the negative consequences of a resource boom are not a 'curse' in the sense of an unavoidable fate or destiny, but rather the result of specific policy failures.
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.
Posted Content
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.