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The social development effects of primary commodity export dependence

  • Carmignani, Fabrizio
  • Avom, Desire

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.

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Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 70 (2010)
Issue (Month): 2 (December)
Pages: 317-330

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Handle: RePEc:eee:ecolec:v:70:y:2010:i:2:p:317-330
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolecon

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