Subnational resource curse: do economic or political institutions matter?
AbstractThe absence or the presence of the resource curse is often explained by the specifics of political and institutional factors. The aim of this paper is to study this effect looking separately at economic and political institutions and at their interaction. Unlike most empirical papers in the literature, this paper considers the intra-national variation of institutional environment and access to political decision-making, using a dataset of the Russian regions. It shows that subnational variation of the quality of institutions indeed matters for the effects of resources. Economic institutions follow the traditional 'resource curse' results: resources have a negative impact on growth if the quality of institutions is low. On the other hand, increasing level of democracy has negative consequences for regions with substantial resources. Finally, this paper studies the differentiation between the resource-extracting regions and regions, exporting, but not extracting resources, in terms of the conditional resource curse. --
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Bibliographic InfoPaper provided by Frankfurt School of Finance and Management in its series Frankfurt School - Working Paper Series with number 154.
Date of creation: 2010
Date of revision:
subnational variation; conditional resource curse; democracy; economic institutions; transition economies;
Find related papers by JEL classification:
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- P28 - Economic Systems - - Socialist Systems and Transition Economies - - - Natural Resources; Environment
- Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-01-30 (All new papers)
- NEP-CIS-2011-01-30 (Confederation of Independent States)
- NEP-CWA-2011-01-30 (Central & Western Asia)
- NEP-POL-2011-01-30 (Positive Political Economics)
- NEP-TRA-2011-01-30 (Transition Economics)
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