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Testing the Natural Resource Curse Hypothesis in Indonesia: Evidence at the Regional Level

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  • Ahmad Komarulzaman

    ()
    (Department of Economics, Padjadjaran University)

  • Armida Alisjahbana

    (Department of Economics, Padjadjaran University)

Abstract

Resource curse literatures explain that countries abundant with natural resources tend to grow slower. This hypothesis is relevant for Indonesia as it is a country rich in natural resources. This paper tries to investigate empirically the relationship between resources abundance and its impact on economic development at the regional level using cross section regression approach. The regional financial data from ministry of finance are combined with regional specific data from BPS to seek the pattern. The paper will shed light on whether resources rich regions in Indonesia are trapped in this curse.

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File URL: http://lp3e.fe.unpad.ac.id/wopeds/200602.pdf
File Function: First version, 2006
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Bibliographic Info

Paper provided by Department of Economics, Padjadjaran University in its series Working Papers in Economics and Development Studies (WoPEDS) with number 200602.

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Length: 17 pages
Date of creation: Aug 2006
Date of revision: Aug 2006
Handle: RePEc:unp:wpaper:200602

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Keywords: Natural resource rent; resource curse hypothesis; Indonesia;

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  1. Brunnschweiler, Christa N., 2008. "Cursing the Blessings? Natural Resource Abundance, Institutions, and Economic Growth," World Development, Elsevier, Elsevier, vol. 36(3), pages 399-419, March.
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