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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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Dealing with Dutch disease
TL;DR: In this article, the authors look at Dutch disease, a phenomenon reflecting changes in the structure of production in the wake of a favorable shock (such as a large natural resource discovery, a rise in the international price of an exportable commodity, or the presence of sustained aid or capital inflows).
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Formal institutions and opportunity entrepreneurship. The contingent role of informal institutions
TL;DR: The authors analyzes opportunity entrepreneurship through the interplay between formal and informal institutions, and it seems evident that not all entrepreneurial initiatives have the same quality, but not all entrepreneurship initiatives are the same either.
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Further investigation of natural resources and economic growth: Do natural resources depress economic growth?
Lkhagva Gerelmaa,Koji Kotani +1 more
TL;DR: The authors showed that the natural resource abundance in 1990 had positive impacts on economic growth between 1990 and 2010, contrary to our initial expectation, and they further test Dutch disease theory, and the result contradicts the Dutch disease hypothesis, concluding that in the period from 1970 to 1990, the hypotheses of a resource curse and Dutch disease hold.
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Corporate innovation and political connections in Chinese listed firms
Qingsong Hou,Meixia Hu,Yuan Yuan +2 more
TL;DR: Li et al. as mentioned in this paper examined the relationship between political connections and corporate innovation in China and found that political connections hinder corporate innovation activities and reduce innovation efficiency, suggesting the existence of political resource curse effect on corporate innovation.
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Natural Resources and Economic Development: New Panel Evidence
Donghyeon Kim,Shu Chin Lin +1 more
TL;DR: Using heterogeneous panel cointegration techniques, the authors provides a fresh re-examination of the resource curse while allowing for cross-section heterogeneity and commonalities in the nexus between natural resource abundance and economic development.
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.