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The social development effects of primary commodity export dependence

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  • Carmignani, Fabrizio
  • Avom, Desire

Abstract

On the question of whether natural resources are a curse for growth, the jury is still out. While waiting for a decision, we study whether resource intensity has any effect on social development over and above the effect it might have on income or growth. We measure social development by a combination of health and education outcomes and resource intensity by the share of primary commodities in total merchandise exports. We find that, after controlling for per-capita income and other macroeconomic and institutional factors, a higher dependence on primary commodity exports is negative for social development. The transmission mechanism seems to operate via income inequality and macroeconomic volatility.

Suggested Citation

  • Carmignani, Fabrizio & Avom, Desire, 2010. "The social development effects of primary commodity export dependence," Ecological Economics, Elsevier, vol. 70(2), pages 317-330, December.
  • Handle: RePEc:eee:ecolec:v:70:y:2010:i:2:p:317-330
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    Cited by:

    1. Edwards, Ryan B., 2016. "Mining away the Preston curve," World Development, Elsevier, pages 22-36.
    2. Fearnside, Philip M., 2016. "Environmental and Social Impacts of Hydroelectric Dams in Brazilian Amazonia: Implications for the Aluminum Industry," World Development, Elsevier, pages 48-65.
    3. Fabrizio Carmignani & Abdur Chowdhury, 2012. "The Geographical Dimension of the Development Effects of Natural Resources," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, pages 479-498.
    4. Carmignani, Fabrizio & Chowdhury, Abdur, 2011. "The Development Effects of Natural Resources: A Geographical Dimension," Working Papers and Research 2011-09, Marquette University, Center for Global and Economic Studies and Department of Economics.
    5. Carmignani, Fabrizio, 2013. "Development outcomes, resource abundance, and the transmission through inequality," Resource and Energy Economics, Elsevier, pages 412-428.
    6. Cockx, Lara & Francken, Nathalie, 2016. "Natural resources: A curse on education spending?," Energy Policy, Elsevier, pages 394-408.
    7. Diana Patricia Niño Muñoz, 2015. "Calidad de vida y el desarrollo institucional de los municipios petroleros de Colombia (2000-2010)," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 17(33), pages 203-230, July-Dece.
    8. Carmignani, Fabrizio, 2013. "Development outcomes, resource abundance, and the transmission through inequality," Resource and Energy Economics, Elsevier, pages 412-428.
    9. Cockx, Lara & Francken, Nathalie, 2014. "Extending the concept of the resource curse: Natural resources and public spending on health," Ecological Economics, Elsevier, pages 136-149.
    10. Cockx, Lara & Francken, Nathalie, 2014. "Extending the concept of the resource curse: natural resources and public spending on health," IOB Working Papers 2014.01, Universiteit Antwerpen, Institute of Development Policy (IOB).

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