Institutions and the resource curse
AbstractCountries rich in natural resources constitute both growth losers and growth winners. We claim that the main reason for these diverging experiences is differences in the quality of institutions. More natural resources push aggregate income down, when institutions are grabber friendly, while more resources raise income, when institutions are producer friendly. We test this theory building on Sachs and Warner's influential works on the resource curse. Our main hypothesis: that institutions are decisive for the resource curse, is confirmed. Our results are in sharp contrast to the claim by Sachs and Warner that institutions do not play a role.
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Bibliographic InfoPaper provided by EconWPA in its series Development and Comp Systems with number 0210003.
Length: 26 pages
Date of creation: 08 Oct 2002
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Note: Type of Document - pdf; prepared on latex; pages: 26
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Natural resources; Institutional quality; Growth; Rent-seeking;
Other versions of this item:
- Halvor Mehlum & Karl Moene & Ragnar Torvik, 2004. "Institutions and the Resource Curse," DEGIT Conference Papers c009_012, DEGIT, Dynamics, Economic Growth, and International Trade.
- Mehlum, Halvor & Moene, Karl-Ove & Torvik, Ragnar, 2003. "Institutions and the resource curse," Memorandum 29/2002, Oslo University, Department of Economics.
- Halvor Mehlum & Karl Moene & Ragnar Torvik, 2002. "Institutions and the resource curse," GE, Growth, Math methods 0210004, EconWPA.
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
- Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- The Economic Nature of the Resource Curse: Evidence
by Daron Acemoglu and James Robinson in Why Nations Fail on 2013-05-21 12:02:00
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