Unbundling the Resource Curse
AbstractThis paper decomposes the resource curse and its potential reversal in three important dimensions; type of resource, type of institutional measure, and time. Studying components of primary exports we find that the curse is (to various degrees) present for all components but that its possible reversal is mainly driven by the interaction between institutions and ores and metals. With respect to institutional measures results are similar for outcome based measures and more durable rules. Changing sample starting dates gives qualitatively similar results, despite the fact that there is great variability in the importance of resources over time. Finally, we address the issue of institutions being determined by our resource measures and conclude that some resources certainly seem to influence institutional development, but that this is unlikely to drive our results. Our results also hold when instrumenting institutional quality.
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Bibliographic InfoPaper provided by DEGIT, Dynamics, Economic Growth, and International Trade in its series DEGIT Conference Papers with number c013_020.
Length: 25 pages
Date of creation: Nov 2008
Date of revision:
natural resources; resource curse; property rights; institutions; economic growth; development;
Find related papers by JEL classification:
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
- O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
- P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- N50 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - General, International, or Comparative
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