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Why are natural resources a curse in Africa, but not elsewhere?

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Abstract

We study the nexus between natural resources and growth in Sub-Saharan Africa (SSA) and find that SSA is indeed special: resources dependence retards growth in SSA, but not elsewhere. The natural resources curse is thus specific to SSA. We then show that this specificity does not depend on the type of primary commodities on which SSA specializes. Instead, the SSA specificity appears to arise from the interaction between institutions and natural resources.

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Paper provided by School of Economics, University of Queensland, Australia in its series Discussion Papers Series with number 406.

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Date of creation: 2010
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Handle: RePEc:qld:uq2004:406

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