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Natural resources and sub-national economic performance: Does sub-national democracy matter?

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  • Libman, Alexander
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    Abstract

    The differentiation in the impact of resources on economic growth is often explained by the specifics of institutional factors. The aim of this paper is to investigate how sub-national political differences influence the effect of natural resources on economic growth. Using a dataset of Russian regions, this paper demonstrates that sub-national democratization influences the growth effects of resources and considers possible mechanisms for this influence. The paper finds that in Russia, natural resources are only capable of promoting growth in the regions with non-democratic political systems that, at the same time, have an efficient and non-corrupt bureaucracy.

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    Bibliographic Info

    Article provided by Elsevier in its journal Energy Economics.

    Volume (Year): 37 (2013)
    Issue (Month): C ()
    Pages: 82-99

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    Handle: RePEc:eee:eneeco:v:37:y:2013:i:c:p:82-99

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

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    Keywords: Oil and gas; Sub-national political regimes; Conditional growth effect of resources; Democracy; Russian regions;

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    Cited by:
    1. Fleming, David A. & Measham, Thomas G., 2013. "Disentangling the Natural Resources Curse: National and Regional Socioeconomic Impacts of Resource Windfalls," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150526, Agricultural and Applied Economics Association.
    2. Libman, Alexander, 2013. "Resource Curse, Institutions and Non-Resource Sector," MPRA Paper 53563, University Library of Munich, Germany.
    3. Halkos, George E. & Tzeremes, Nickolaos G., 2013. "Carbon dioxide emissions and governance: A nonparametric analysis for the G-20," Energy Economics, Elsevier, vol. 40(C), pages 110-118.

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