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The Resource Curse - A Natural Experiment

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  • Zenthöfer, A.F.

    (Tilburg University, Center for Economic Research)

Abstract

This paper compares Mauritius and Trinidad and Tobago which have a very similar climate, history, institutional framework, ethnic composition, size, etc., but are different in the natural resources they possess. Trinidad and Tobago has achieved a higher per capita GDP based on its petrodollars, but Mauritius has achieved a more robust and stable growth path and a diversified economy based on an export-oriented economic strategy. Trinidad and Tobago is highly dependent on the world market prices for oil and gas and engages in a smaller variety of economic activities, giving it a worse perspective for its future economic development. It appears that this curse is mainly working through Dutch disease effects.

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Bibliographic Info

Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2011-028.

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Date of creation: 2011
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Handle: RePEc:dgr:kubcen:2011028

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Web page: http://center.uvt.nl

Related research

Keywords: Resource Curse; Dutch Disease; Natural Experiment; Mauritius; Trinidad and Tobago;

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