Development based on commodity revenues
AbstractCommodity resources offer vast opportunities for development. In the long run, however, the performance of commodity-rich countries tends to fall short of expectations, as commodity rents induce macroeconomic volatility and undermine incentives to improve institutions. The paper looks at the strategies that countries can adopt to avoid the “resource trap”. These strategies aim at diversifying the economy, promoting financial development, building up stabilisation buffers that lower macroeconomic volatility, and reducing inequality. The resource-rich EBRD countries of operations have embraced these strategies to varying degrees, and with varying success. Improving institutions remains the key challenge.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by European Bank for Reconstruction and Development, Office of the Chief Economist in its series Working Papers with number 108.
Length: 44 pages
Date of creation: Dec 2009
Date of revision:
Contact details of provider:
Postal: One Exchange Square, London EC2A 2JN
Web page: http://www.ebrd.com/pages/research/publications/workingpapers.shtml
More information through EDIRC
natural resources; economic boom; institutions; financial development;
Find related papers by JEL classification:
- Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
- Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Berglof, Erik & Lehmann, Alexander, 2009. "Sustaining Russia's growth: The role of financial reform," Journal of Comparative Economics, Elsevier, vol. 37(2), pages 198-206, June.
- Olivier J. Blanchard & Florencio Lopez-de-Silane, 1993.
"What do Firms do with Cash Windfalls?,"
NBER Working Papers
4258, National Bureau of Economic Research, Inc.
- Sergei Guriev & Anton Kolotilin & Konstantin Sonin, 2011.
"Determinants of Nationalization in the Oil Sector: A Theory and Evidence from Panel Data,"
Journal of Law, Economics and Organization,
Oxford University Press, vol. 27(2), pages 301-323.
- Guriev, Sergei & Kolotilin, Anton & Sonin, Konstantin, 2008. "Determinants of Expropriation in the Oil Sector: A Theory and Evidence from Panel Data," CEPR Discussion Papers 6755, C.E.P.R. Discussion Papers.
- Sergei Guriev & Konstantin Sonin & Anton Kolotilin, 2007. "Determinants of Expropriation in the Oil Sector: A Theory and Evidence from Panel Data," Working Papers w0115, Center for Economic and Financial Research (CEFIR).
- Halvor Mehlum & Karl Moene & Ragnar Torvik, 2004.
"Institutions and the Resource Curse,"
DEGIT Conference Papers
c009_012, DEGIT, Dynamics, Economic Growth, and International Trade.
- Halvor Mehlum & Karl Moene & Ragnar Torvik, 2002. "Institutions and the resource curse," GE, Growth, Math methods 0210004, EconWPA.
- Halvor Mehlum & Karl Moene & Ragnar Torvik, 2002. "Institutions and the resource curse," Development and Comp Systems 0210003, EconWPA.
- Mehlum, Halvor & Moene, Karl-Ove & Torvik, Ragnar, 2003. "Institutions and the resource curse," Memorandum 29/2002, Oslo University, Department of Economics.
- Sachs, J-D & Warner, A-M, 1996.
"Sources of Slow Growth in African Economies,"
545, Harvard - Institute for International Development.
- Gylfason, Thorvaldur, 2001.
"Natural resources, education, and economic development,"
European Economic Review,
Elsevier, vol. 45(4-6), pages 847-859, May.
- Gylfason, Thorvaldur, 2000. "Natural Resources, Education, and Economic Development," CEPR Discussion Papers 2594, C.E.P.R. Discussion Papers.
- Jean-Philippe C. Stijns, 2001.
"Natural Resource Abundance and Human Capital Accumulation,"
Development and Comp Systems
- Stijns, Jean-Philippe, 2006. "Natural resource abundance and human capital accumulation," World Development, Elsevier, vol. 34(6), pages 1060-1083, June.
- Stijns, Jean-Philippe C., 2001. "Natural Resource Abundance and Human Capital Accumulation," Conference Papers 25128, University of California, Berkeley, Department of Agricultural and Resource Economics.
- Murphy, Kevin M. & Shleifer, Andrei & Vishny, Robert W., 1989.
"Industrialization and the Big Push,"
3606235, Harvard University Department of Economics.
- Amin, Mohammad & Djankov, Simeon, 2009.
"Natural Resources and Reforms,"
CEPR Discussion Papers
7229, C.E.P.R. Discussion Papers.
- Michael M Hutchison, 1990.
"Manufacturing sector resiliency to energy booms: Empirical evidence from Norway, the Netherlands and the United Kingdom,"
BIS Working Papers
13, Bank for International Settlements.
- Hutchison, Michael M, 1994. "Manufacturing Sector Resiliency to Energy Booms: Empirical Evidence from Norway, the Netherlands, and the United Kingdom," Oxford Economic Papers, Oxford University Press, vol. 46(2), pages 311-29, April.
- Konstantin Sonin, 2003.
"Why the Rich May Favor Poor Protection of Property Rights,"
w0022, Center for Economic and Financial Research (CEFIR).
- Sonin, Konstantin, 2003. "Why the rich may favor poor protection of property rights," Journal of Comparative Economics, Elsevier, vol. 31(4), pages 715-731, December.
- Konstantin Sonin, 2002. "Why the Rich May Favor Poor Protection of Property Rights," William Davidson Institute Working Papers Series 544, William Davidson Institute at the University of Michigan.
- Corden, W Max & Neary, J Peter, 1982. "Booming Sector and De-Industrialisation in a Small Open Economy," Economic Journal, Royal Economic Society, vol. 92(368), pages 825-48, December.
- Nili, Masoud & Rastad, Mahdi, 2007. "Addressing the growth failure of the oil economies: The role of financial development," The Quarterly Review of Economics and Finance, Elsevier, vol. 46(5), pages 726-740, February.
- Hausmann, Ricardo & Hwang, Jason & Rodrik, Dani, 2005.
"What You Export Matters,"
Working Paper Series
rwp05-063, Harvard University, John F. Kennedy School of Government.
- Erik Berglof & Yevgeniya Korniyenko & Alexander Plekhanov & Jeromin Zettelmeyer, 2010. "Understanding the Crisis in Emerging Europe," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 6(6), pages 985-1008, September.
- Gylfason, Thorvaldur & Herbertsson, Tryggvi Thor & Zoega, Gylfi, 1997. "A Mixed Blessing: Natural Resources and Economic Growth," CEPR Discussion Papers 1668, C.E.P.R. Discussion Papers.
- C. A. Hidalgo & B. Klinger & A. -L. Barabasi & R. Hausmann, 2007. "The Product Space Conditions the Development of Nations," Papers 0708.2090, arXiv.org.
- Krugman, Paul, 1987. "The narrow moving band, the Dutch disease, and the competitive consequences of Mrs. Thatcher : Notes on trade in the presence of dynamic scale economies," Journal of Development Economics, Elsevier, vol. 27(1-2), pages 41-55, October.
- Elena Suslova & Natalya Volchkova, 2007. "Human Capital, Industrial Growth and Resource Curse," Working Papers WP13_2007_11, Laboratory for Macroeconomic Analysis.
- Art Durnev & Sergei Guriev, 2007.
"The Resource Curse: A Corporate Transparency Channel,"
w0108, Center for Economic and Financial Research (CEFIR).
- Durnev, Artyom & Guriev, Sergei, 2007. "The Resource Curse: A Corporate Transparency Channel," CEPR Discussion Papers 6547, C.E.P.R. Discussion Papers.
- Hattendorff, Christian, 2013. "The Natural Resource Curse Revisited: Is There a Financial Channel?," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79805, Verein für Socialpolitik / German Economic Association.
- Christian Hattendorff, 2012. "Do Natural Resource Sectors Rely Less on External Finance than Manufacturing Sectors?," SFB 649 Discussion Papers SFB649DP2012-050, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
- Commander, Simon & Nikoloski, Zlatko & Plekhanov, Alexander, 2011. "Employment Concentration and Resource Allocation: One-Company Towns in Russia," IZA Discussion Papers 6034, Institute for the Study of Labor (IZA).
- Asel Isakova & Alexander Plekhanov & Jeromin Zettelmeyer, 2012. "Managing Mongolia’s resource boom," Working Papers 138, European Bank for Reconstruction and Development, Office of the Chief Economist.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Olga Lucas).
If references are entirely missing, you can add them using this form.