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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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Framing and Claiming: Contemporary Globalization and “Going Out” in China's Rhetoric towards Latin America
TL;DR: The authors explored how political elites have understood the sources of China's own domestic development and then projected those notions on to other parts of the developing world, through earlier "fractal" logics of development whereby each state repeats one model of development in its own way and a currently dominant "division of labour" logic that posits one integrated model of developing whereby complementarity and comparative advantage hold sway.
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Does Democracy Cure a Resource Curse
TL;DR: In this article, the authors used a large and reasonably detailed dataset to show that a greater level of democracy in a country's political institutions can alleviate the widely known resource curse, an effect that seems to work through several different channels.
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Natural Resource Abundance and Economic Performance—A Literature Review
TL;DR: The resource curse hypothesis seems anomalous as development economics, since on the surface it has no clear policy implication, but stands as a sad prediction as discussed by the authors. But with good intentions and innovative thinking, there is no reason why resource-rich countries need fall prey to the curse.
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China and Natural Resource Curse in Developing Countries: Empirical Evidence from a Cross-country Study
Fubing Su,Guoxue Wei,Ran Tao +2 more
TL;DR: Using panel data for 135 developing countries from 1995 to 2007, the authors empirically evaluates the validity of such claims and finds that the effect of resources is conditional on the initial quality of political institutions in a country.
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Has Bolivia׳s 2006–12 gas policy been useful to combat the resource curse?
TL;DR: In this article, the authors investigate the changes to Bolivia's gas policy since 2006 and the evolution of its industry via three aspects: production and inversion, exports, and gas industrialization.
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.
Posted Content
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.