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Natural Resources and the 'Quality' of Economic Development

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  • Vittorio Daniele

Abstract

Are natural resources a 'blessing' or a 'curse' for human development? This article attempts to answer the question by distinguishing between a 'dependence' on natural resources and an 'abundance' of the same. Dependence is measured in terms of exports of metals and fuel, while resource abundance is calculated on the basis of the subsoil assets per square kilometre and per capita. Results show the existence of a negative correlation between metals and ore exports and human development, while subsoil assets measures are, rather, positively related. These effects are particularly significant in countries with a comparatively lower institutional quality. The cases of Botswana, the Democratic Republic of Congo and Equatorial Guinea, briefly examined, suggest, however, that the effects of natural resources on human and economic development can be very different, and strictly related to specific national political and institutional characteristics.

Suggested Citation

  • Vittorio Daniele, 2011. "Natural Resources and the 'Quality' of Economic Development," Journal of Development Studies, Taylor & Francis Journals, vol. 47(4), pages 545-573.
  • Handle: RePEc:taf:jdevst:v:47:y:2011:i:4:p:545-573
    DOI: 10.1080/00220388.2010.506915
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    References listed on IDEAS

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    Cited by:

    1. Badeeb, Ramez Abubakr & Lean, Hooi Hooi & Smyth, Russell, 2016. "Oil curse and finance–growth nexus in Malaysia: The role of investment," Energy Economics, Elsevier, vol. 57(C), pages 154-165.
    2. Edwards, Ryan B., 2016. "Mining away the Preston curve," World Development, Elsevier, vol. 78(C), pages 22-36.
    3. repec:gam:jsusta:v:10:y:2018:i:3:p:715-:d:134945 is not listed on IDEAS
    4. Kim, Dong-Hyeon & Lin, Shu-Chin, 2017. "Human capital and natural resource dependence," Structural Change and Economic Dynamics, Elsevier, vol. 40(C), pages 92-102.
    5. Asongu, Simplice A & Nwachukwu, Jacinta C., 2016. "Transfer Mispricing as an Argument for Corporate Social Responsibility," MPRA Paper 75413, University Library of Munich, Germany.
    6. repec:eee:jrpoli:v:53:y:2017:i:c:p:328-339 is not listed on IDEAS
    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. Parcero, Osiris J. & Papyrakis, Elissaios, 2016. "Income inequality and the oil resource curse," Resource and Energy Economics, Elsevier, vol. 45(C), pages 159-177.
    9. Cockx, Lara & Francken, Nathalie, 2014. "Extending the concept of the resource curse: Natural resources and public spending on health," Ecological Economics, Elsevier, vol. 108(C), pages 136-149.
    10. repec:eee:ecolec:v:138:y:2017:i:c:p:1-11 is not listed on IDEAS
    11. 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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