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
Journal ArticleDOI
Has Malaysia really escaped the resource curse? A closer look at the political economy of oil revenue management and expenditures
TL;DR: In this article, the authors examined the policy implications of the findings and concluded that Malaysia has not escaped the resource curse since the Asian financial crisis, and pointed out that the economy has experienced premature deindustrialisation and oil and gas revenues have become the major source of financing the budget, casting doubts on whether Malaysia has in fact been untouched by the resources curse.
BookDOI
Are natural resources cursed ? an investigation of the dynamic effects of resource dependence on institutional quality
TL;DR: In this paper, the authors examined whether natural resource dependence has a negative influence on various indicators of institutional quality when controlling for the potential effects of other geographic, economic and cultural initial conditions.
Journal Article
Laws and Codes for the Resource Curse
TL;DR: The authors analyzes the potential contribution of such codes and laws to increase the development impact of natural resource revenues, concluding that where behavior patterns to stay unaltered the present commodity booms would be a missed opportunity of quite staggering proportions.
Journal ArticleDOI
Dutch Disease Dynamics Reconsidered
TL;DR: In this paper, the authors developed a model to incorporate the dynamic productivity consequences of both the spending effect and the resource movement effect of oil abundance, which dramatically alters the conclusions drawn from earlier models of learning by doing (LBD) and the Dutch disease.
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.