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Does Institution Explain Natural Resource Curse?

Author

Listed:
  • Pelzman Joseph

    (The George Washington University, Washington, D.C., USA)

  • Oskenbayev Yessengali
  • Issabayev Murat

    (Narxoz University, Almaty, Kazakhstan)

Abstract

In this paper we study the natural resource curse by analyzing the cross-regional sample from Kazakhstan. Our focus is to understand if the institutional quality within the country explains the resource curse. Using the data for 14 regions in Kazakhstan between 2000 and 2010 and employing various panel data approaches, we find that the institutional quality is not a determinant of the resource curse as institution changes very slowly within the country over time. This statement surely contradicts with previous resource curse literatures that utilized cross-country sample counting the fact that institutions vary across countries. Instead here, we argue that the resource curse within the country arises as a result of commodity price volatility.

Suggested Citation

  • Pelzman Joseph & Oskenbayev Yessengali & Issabayev Murat, 2018. "Does Institution Explain Natural Resource Curse?," Global Economy Journal, De Gruyter, vol. 18(4), pages 1-9, December.
    • Handle: RePEc:bpj:glecon:v:18:y:2018:i:4:p:9:n:3
    DOI: 10.1515/gej-2018-0057
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    Cited by:

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    2. Hasanov, Fakhri J. & Aliyev, Ruslan & Taskin, Dilvin & Suleymanov, Elchin, 2023. "Oil rents and non-oil economic growth in CIS oil exporters. The role of financial development," Resources Policy, Elsevier, vol. 82(C).
    3. Yadulla Hasanli & Elkhan Richard Sadik-Zada & Simrah Ismayilova & Günay Rahimli & Farida Ismayilova, 2023. "Could the Lacking Absorption Capacity of the Inflowing Capital Be the Real Cause of the Resource Curse?—A Case Study of Transition Economies," Sustainability, MDPI, vol. 15(14), pages 1-17, July.

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    More about this item

    Keywords

    energy production; Kazakhstan; institution; commodity price volatility; resource curse;
    All these keywords.

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q27 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Issues in International Trade

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