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The social development effects of primary commodity export dependence

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  • Carmignani, Fabrizio
  • Avom, Desire

Abstract

On the question of whether natural resources are a curse for growth, the jury is still out. While waiting for a decision, we study whether resource intensity has any effect on social development over and above the effect it might have on income or growth. We measure social development by a combination of health and education outcomes and resource intensity by the share of primary commodities in total merchandise exports. We find that, after controlling for per-capita income and other macroeconomic and institutional factors, a higher dependence on primary commodity exports is negative for social development. The transmission mechanism seems to operate via income inequality and macroeconomic volatility.

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Bibliographic Info

Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 70 (2010)
Issue (Month): 2 (December)
Pages: 317-330

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Handle: RePEc:eee:ecolec:v:70:y:2010:i:2:p:317-330

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Web page: http://www.elsevier.com/locate/ecolecon

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Keywords: Social development Natural resources Primary commodities Inequality Volatility;

References

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Cited by:
  1. Carmignani, Fabrizio, 2013. "Development outcomes, resource abundance, and the transmission through inequality," Resource and Energy Economics, Elsevier, vol. 35(3), pages 412-428.
  2. Fabrizio Carmignani & Abdur Chowdhury, 2011. "The Development Effects Of Natural Resources: A Geographical Dimension," William Davidson Institute Working Papers Series wp1022, William Davidson Institute at the University of Michigan.
  3. Cockx, Lara & Francken, Nathalie, 2014. "Extending the concept of the resource curse : Natural resources and public spending on health," IOB Working Papers 2014.01, Universiteit Antwerpen, Institute of Development Policy and Management (IOB).

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