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Natural resources, manufacturing and institutions in post-Soviet countries

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  • Horváth, Roman
  • Zeynalov, Ayaz

Abstract

We examine the effect of natural resource exports on economic performance during the 1996–2010 period in the 15 independent countries that formerly comprised the Soviet Union. After the fall of communism, these countries began to demonstrate marked differences from one another with respect to economic development and institutions, which has resulted in unique cross-sectional and time variation. Using several panel regression models that address endogeneity and clustering issues, our results suggest that natural resources crowd out manufacturing unless the quality of domestic institutions is sufficiently high.

Suggested Citation

  • Horváth, Roman & Zeynalov, Ayaz, 2016. "Natural resources, manufacturing and institutions in post-Soviet countries," Resources Policy, Elsevier, vol. 50(C), pages 141-148.
  • Handle: RePEc:eee:jrpoli:v:50:y:2016:i:c:p:141-148
    DOI: 10.1016/j.resourpol.2016.09.007
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    More about this item

    Keywords

    Natural resource curse; Institutions; Manufacturing; Post-Soviet countries;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P28 - Economic Systems - - Socialist Systems and Transition Economies - - - Natural Resources; Environment
    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General

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