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Resource curse or not: A question of appropriability

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  • Anne D. Boschini
  • Jan Pettersson
  • Jesper Roine

Abstract

This paper shows that whether natural resources are good or bad for a country’s development crucially depends on the interaction between institutional setting and the type of resources possessed by the country. Some natural resources are, for economical and technical reasons, more likely to cause problems such as rent-seeking and conflicts than others. This potential problem can, however, be countered by good institutional quality. In contrast to the traditional resource curse hypothesis, we show the impact of natural resources on economic growth to be non-monotonic in institutional quality. Countries rich in minerals are cursed only if they have low quality institutions, while the curse is reversed if institutions are sufficiently good.

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Bibliographic Info

Paper provided by DEGIT, Dynamics, Economic Growth, and International Trade in its series DEGIT Conference Papers with number c011_050.

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Length: 44 pages
Date of creation: Jun 2006
Date of revision:
Handle: RePEc:deg:conpap:c011_050

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Keywords: Natural Resources; Appropriability; Property Rights; Institutions; Economic Growth; Development;

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References

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  1. Francisco Alcalá & Antonio Ciccone, 2004. "Trade and Productivity," The Quarterly Journal of Economics, MIT Press, vol. 119(2), pages 612-645, May.
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  8. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 1999. "The Quality of Government," Journal of Law, Economics and Organization, Oxford University Press, vol. 15(1), pages 222-79, April.
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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Mer om naturresursers effekt på utveckling
    by Jesper Roine in Ekonomistas on 2010-02-10 09:00:22
  2. När är naturresurser en förbannelse?
    by Jesper Roine in Ekonomistas on 2008-04-30 14:50:04
  3. Entre maldiciones y bendiciones: la abundancia de los recursos naturales
    by juanhmex in Pasado y Presente de la Economia Mundial on 2012-09-25 22:01:30
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