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Revisiting the role of the resource curse in shaping institutions and growth

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  • Murshed, S.M.
  • Badiuzzaman, M.
  • Pulok, M.H.

Abstract

This paper examines the effect of natural resource dependence on growth in a cross-country setting during 1970 to 2010, first accounting for the effect of resource export dependence on institutional development. We employ several political and governance indicators, numerous econometric techniques on two separate panels, including one post-cold war. Our findings suggest there is a resource curse adversely effecting growth via institutional deterioration in the longer term (1970-2010), but recently (1995-2012) there is a reversal of this adverse effect on some institutions. Moreover, certain institutions matter more for growth, including governance and constraints on the executive relative to democracy.

Suggested Citation

  • Murshed, S.M. & Badiuzzaman, M. & Pulok, M.H., 2015. "Revisiting the role of the resource curse in shaping institutions and growth," ISS Working Papers - General Series 605, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    • Handle: RePEc:ems:euriss:77766
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    References listed on IDEAS

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    5. Acemoglu, Daron & Johnson, Simon & Robinson, James A., 2005. "Institutions as a Fundamental Cause of Long-Run Growth," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 6, pages 385-472, Elsevier.
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    7. Jörg Mayer & Brian Chambers & Ayisha Farooq (ed.), 1999. "Development Policies in Natural Resource Economies," Books, Edward Elgar Publishing, number 1666.
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    Cited by:

    1. Kumba Digdowiseiso, 2022. "Is Fiscal Decentralization Growth Enhancing? A Cross-Country Study in Developing Countries over the Period 1990–2014," Economies, MDPI, vol. 10(3), pages 1-17, March.
    2. Cockx, Lara & Francken, Nathalie, 2016. "Natural resources: A curse on education spending?," Energy Policy, Elsevier, vol. 92(C), pages 394-408.

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    More about this item

    Keywords

    resource dependence; growth; institutions;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)

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