IDEAS home Printed from https://ideas.repec.org/a/bpj/bejeap/v8y2008i1n5.html
   My bibliography  Save this article

Resources for Sale: Corruption, Democracy and the Natural Resource Curse

Author

Listed:
  • Bulte Erwin

    () (Development Economics Group, Wageningen University)

  • Damania Richard

    () (World Bank)

Abstract

A puzzling piece of empirical evidence suggests that resource-abundant countries tend to grow slower than their resource-poor counterparts. We attempt to explain this phenomenon by developing a lobbying game in which rent seeking firms interact with corrupt governments. The presence or absence of political competition, as well as the potential costs of political transitions, turn out to be key elements in generating the 'resource curse.' These variables define the degree of freedom that incumbent governments have in pursuing development policies that maximize surplus in the lobbying game, but put the economy off its optimal path.

Suggested Citation

  • Bulte Erwin & Damania Richard, 2008. "Resources for Sale: Corruption, Democracy and the Natural Resource Curse," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-30, February.
  • Handle: RePEc:bpj:bejeap:v:8:y:2008:i:1:n:5
    DOI: 10.2202/1935-1682.1890
    as

    Download full text from publisher

    File URL: https://doi.org/10.2202/1935-1682.1890
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Minier, Jenny A, 1998. "Democracy and Growth: Alternative Approaches," Journal of Economic Growth, Springer, vol. 3(3), pages 241-266, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jeffrey Frankel, 2014. "Mauritius: African Success Story," NBER Chapters, in: African Successes, Volume IV: Sustainable Growth, pages 295-342, National Bureau of Economic Research, Inc.
    2. Juan Pineiro Chousa & Haider Ali Khan & Davit N. Melikyan & Artur Tamazian, 2005. "Institutional and Financial Determinants of Development: New Evidence from Advanced and Emerging Markets," CIRJE F-Series CIRJE-F-326, CIRJE, Faculty of Economics, University of Tokyo.
    3. Rode, Martin & Gwartney, James D., 2012. "Does democratization facilitate economic liberalization?," European Journal of Political Economy, Elsevier, vol. 28(4), pages 607-619.
    4. Jian-Guang Shen, 2002. "Democracy and growth: An alternative empirical approach," Development and Comp Systems 0212002, University Library of Munich, Germany.
    5. Pauline Grosjean & Claudia Senik, 2011. "Democracy, Market Liberalization, and Political Preferences," The Review of Economics and Statistics, MIT Press, vol. 93(1), pages 365-381, February.
    6. Juan Pineiro Chousa & Haider A. Khan & Davit N. Melikyan & Artur Tamazian, 2006. "Democracy, Finance and Development," CARF F-Series CARF-F-088, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
    7. Freund, Caroline & Jaud, Mélise, 2013. "Regime Change, Democracy and Growth," CEPR Discussion Papers 9282, C.E.P.R. Discussion Papers.
    8. C. Alper & S. Cakici, 2009. "Financial Liberalization, Fiscal Prudence and Growth: Panel Evidence from 1980–2003," Open Economies Review, Springer, vol. 20(4), pages 509-524, September.
    9. Tommaso Nannicini & Roberto Ricciuti, 2010. "Autocratic Transitions and Growth," CESifo Working Paper Series 2967, CESifo.
    10. Samuel Adams & Kingsley S. Agomor, 2015. "Democratic politics and voting behaviour in Ghana," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 18(4), pages 365-381, December.
    11. Takahiro SATO, 2017. "India in the World Economy: Inferences from Empirics of Economic Growth," ESRI Discussion paper series 338, Economic and Social Research Institute (ESRI).
    12. Gradstein, Mark, 2005. "Democracy, Property Rights, Redistribution and Economic Growth," CEPR Discussion Papers 5130, C.E.P.R. Discussion Papers.
    13. Bednarik, Radek & Filipova, Lenka, 2009. "The role of religion and political regime for human capital and economic development," MPRA Paper 14556, University Library of Munich, Germany.
    14. Shen, Jian-Guang, 2002. "Democracy and growth : An alternative empirical approach," BOFIT Discussion Papers 13/2002, Bank of Finland, Institute for Economies in Transition.
    15. Ethan Kapstein & Nathan Converse, 2006. "The Economics of Young Democracies: Policies and Performance," Working Papers 85, Center for Global Development.
    16. Körner, Tobias & Schnabel, Isabel, 2010. "Public Ownership of Banks and Economic Growth - The Role of Heterogeneity," CEPR Discussion Papers 8138, C.E.P.R. Discussion Papers.
    17. Mina Baliamoune, 2009. "Elites, Education and Reforms," ICER Working Papers 18-2009, ICER - International Centre for Economic Research.
    18. Facundo Albornoz & Jayasri Dutta, 2007. "Political Regimes and Economic Growth in Latin America," Discussion Papers 07-06, Department of Economics, University of Birmingham.
    19. Kimlong Chheng, 2005. "How Do Economic Freedom and Investment Affect Economic Growth?," Macroeconomics 0509021, University Library of Munich, Germany.
    20. M. Zakir Saadullah Khan, 2012. "Examining Friedman Hypothesis On Political,Civil And Economic Freedom For Saarc Countries: A Dynamic Panel Data Analysis," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 37(3), pages 107-127, September.

    More about this item

    JEL classification:

    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:bejeap:v:8:y:2008:i:1:n:5. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Golla). General contact details of provider: https://www.degruyter.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.