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Ideology and the Role of Natural Resources in Bolivia

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  • Casto Martín Montero Kuscevic

Abstract

The growth literature has identified four channels of transmission by which the abundance of natural resources can negatively affect economic growth. In this article, I suggest ideology as a fifth transmission channel. To test this hypothesis, I exploit the geography of Bolivia whose western regions have natural resources that differ considerably from its eastern regions. I find that regions with predominantly extractive natural resources tend to choose redistributive and interventionist rather than laissez-faire policies. Additionally, I identify two effects on growth depending upon the type of natural resource that a region possesses in abundance.

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  • Casto Martín Montero Kuscevic, 2019. "Ideology and the Role of Natural Resources in Bolivia," Journal of Economic Issues, Taylor & Francis Journals, vol. 53(3), pages 799-812, July.
    • Handle: RePEc:mes:jeciss:v:53:y:2019:i:3:p:799-812
    DOI: 10.1080/00213624.2019.1644929
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