Open AccessPosted Content
Institutions and the resource curse
Reads0
Chats0
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
Citations
More filters
Posted Content
Re-evaluating the impact of natural resources on economic growth
Nuno Torres,Óscar Afonso +1 more
TL;DR: In this article, the authors re-evaluate the impact of natural resources on economic growth and find an overall positive effect on growth arising from the increase in capital efficiency associated with concentrated resources, exactly the kind of resources that explain the resource curse.
ReportDOI
Institutional Comparative Statics
TL;DR: In this paper, the authors argue that the response of economies to shocks or innovations in economic opportunities depends on the nature of institutions and that when institutions are strong, new opportunities or windfalls can have positive effects.
Posted Content
Property Rights, Oil and Income Levels: Over a Century of Evidence
TL;DR: In this paper, the authors investigate the effects of different regimes of control rights over oil exploitation on aggregate domestic income and construct a new panel dataset on petroleum ownership structures for up to 68 countries between 1867-2008.
Journal ArticleDOI
Investigating the oil curse in OECD and Non-OECD oil-exporting economies using green measures of income
TL;DR: In this article, the authors used the Arellano-Bond difference GMM method in investigating the oil curse in OECD and non-OECD oil-exporting economies.
Journal ArticleDOI
Potash ownership and extraction: Between a rock and a hard place in Saskatchewan
Aidan R. Vining,Mark A. Moore +1 more
TL;DR: In this article, the authors use the privatization of Potash Corporation of Saskatchewan (PCS) to illustrate the trade-off between efficient non-renewable natural resource production with effective capture of the resource rents.
References
More filters
Journal ArticleDOI
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).
Journal ArticleDOI
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.
Journal ArticleDOI
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.