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Natural resource dependence, non-tradables, and economic growth

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  • Brückner, Markus

Abstract

I argue that the commonly used nominal measure of natural resource dependence - the share of exports of primary products in GNP - understates in growth regressions the negative link between natural resource dependence and per capita GDP growth. I show that using a purchasing power parity adjusted measure yields an economically much larger negative relationship between per capita GDP growth and natural resource dependence than what has been suggested by the nominal measure. Consistent with the rent-seeking literature, I show that the resource curse is a symptom of societies characterized by high levels of corruption and sluggish checks and balances on political decision-making.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Comparative Economics.

Volume (Year): 38 (2010)
Issue (Month): 4 (December)
Pages: 461-471

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Handle: RePEc:eee:jcecon:v:38:y:2010:i:4:p:461-471

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Web page: http://www.elsevier.com/locate/inca/622864

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Keywords: Growth Natural resources Political institutions Corruption;

References

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Cited by:
  1. Libman, Alexander, 2010. "Subnational resource curse: do economic or political institutions matter?," Frankfurt School - Working Paper Series, Frankfurt School of Finance and Management 154, Frankfurt School of Finance and Management.
  2. Libman, Alexander, 2013. "Natural resources and sub-national economic performance: Does sub-national democracy matter?," Energy Economics, Elsevier, Elsevier, vol. 37(C), pages 82-99.
  3. Ali, Issa & Harvie, Charles, 2013. "Oil and economic development: Libya in the post-Gaddafi era," Economic Modelling, Elsevier, Elsevier, vol. 32(C), pages 273-285.
  4. Eoin McGuirk, 2013. "The illusory leader: natural resources, taxation and accountability," Public Choice, Springer, Springer, vol. 154(3), pages 285-313, March.

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