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Resource Curse or Not: A Question of Appropriability

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  • Anne D. Boschini
  • Jan Pettersson
  • Jesper Roine

Abstract

Whether natural resources are good or bad for a country's development are shown to depend on the interaction between institutional setting and, crucially, the types of resources possessed by the country. Some natural resources are, for economical and technical reasons, more likely to cause problems such as rent-seeking and conflicts than others. This potential problem can, however, be countered by good institutional quality. In contrast to the traditional resource curse hypothesis, we show the impact of natural resources on economic growth to be non-monotonic in institutional quality, and increasingly so for certain types of resources. In particular, countries rich in minerals are cursed only if they have low-quality institutions, while the curse is reversed if institutions are sufficiently good. Furthermore, if countries are rich in diamonds and precious metals, these effects-both positive and negative-are larger. Copyright The editors of the "Scandinavian Journal of Economics" 2007 .

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Scandinavian Journal of Economics.

Volume (Year): 109 (2007)
Issue (Month): 3 (09)
Pages: 593-617

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Handle: RePEc:bla:scandj:v:109:y:2007:i:3:p:593-617

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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Mer om naturresursers effekt på utveckling
    by Jesper Roine in Ekonomistas on 2010-02-10 09:00:22
  2. När är naturresurser en förbannelse?
    by Jesper Roine in Ekonomistas on 2008-04-30 14:50:04
  3. Entre maldiciones y bendiciones: la abundancia de los recursos naturales
    by juanhmex in Pasado y Presente de la Economia Mundial on 2012-09-25 22:01:30
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