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The resource curse revisited: governance and natural resources

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  • Matthias Busse

    ()

  • Steffen Gröning

Abstract

The paper analyzes the impact of natural resource abundance on selected governance indicators. We use a panel data set with observations on a large number of countries over an extended period of time and employ an instrumental variable technique to account for endogeneity. The results show that exports of natural resources have, above all, led to an increase in corruption. This result is robust to both different model specifications and an alternative indicator for natural resource abundance. For other governance indicators, such as law and order and bureaucratic quality, we either find no results or results that lack robustness. Copyright Springer Science+Business Media, LLC 2013

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Bibliographic Info

Article provided by Springer in its journal Public Choice.

Volume (Year): 154 (2013)
Issue (Month): 1 (January)
Pages: 1-20

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Handle: RePEc:kap:pubcho:v:154:y:2013:i:1:p:1-20

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Web page: http://www.springerlink.com/link.asp?id=100332

Related research

Keywords: F10; O13; Q32; Natural resources; Resource curse; Corruption; Governance;

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Cited by:
  1. Hillmann, Katja & Hohenleitner, Ingrid, 2012. "Impact of benefit sanctions on unemployment outflow: Evidence from German survey data," HWWI Research Papers 129, Hamburg Institute of International Economics (HWWI).

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