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Trade policies, institutions and the natural resource curse

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  • Rabah Arezki
  • Frederick van der Ploeg

Abstract

We offer new cross-country evidence on the natural resource curse. We investigate the impact of the interaction of natural resource abundance and policies on growth. We find that the resource curse is less severe in countries with less restrictive trade policies and good institutions. However, we show that empirical evidence on the resource curse is not robust to correcting for the endogenous nature of some regressors.

Suggested Citation

  • Rabah Arezki & Frederick van der Ploeg, 2010. "Trade policies, institutions and the natural resource curse," Applied Economics Letters, Taylor & Francis Journals, vol. 17(15), pages 1443-1451.
    • Handle: RePEc:taf:apeclt:v:17:y:2010:i:15:p:1443-1451
    DOI: 10.1080/13504850903035881
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    References listed on IDEAS

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    1. Kaufmann, Daniel & Kraay, Aart & Zoido-Lobaton, Pablo, 2002. "Governance matters II - updated indicators for 2000-01," Policy Research Working Paper Series 2772, The World Bank.
    2. Roberto Rigobon & Dani Rodrik, 2004. "Rule of Law, Democracy, Openness, and Income: Estimating the Interrelationships," NBER Working Papers 10750, National Bureau of Economic Research, Inc.
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