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Resource Abundance, Poverty and Development

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  • Bulte, Erwin H
  • Damania, Richard
  • Deacon, Robert

Abstract

We examine the relationship between resource abundance and several indicators of human welfare. Consistent with the existing literature on the relationship between resource abundance and economic growth, we find that resource-abundant countries tend to suffer low levels of human development. While we find no support for a direct link between resources and welfare, there is an indirect link that operates through institutional quality. There are also significant differences in the effects that resources have on different measures of institutional quality. These results imply that the “resource curse†is a more encompassing phenomenon than previously considered, and that key differences exist between the effects of different resource types on various aspects of governance and human welfare.

Suggested Citation

  • Bulte, Erwin H & Damania, Richard & Deacon, Robert, 2003. "Resource Abundance, Poverty and Development," University of California at Santa Barbara, Economics Working Paper Series qt66z854gv, Department of Economics, UC Santa Barbara.
  • Handle: RePEc:cdl:ucsbec:qt66z854gv
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Lubna Hasan, 2007. "Myths and Realities of Long-run Development: A Look at Deeper Determinants," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 46(1), pages 19-44.
    2. Andersen, Jørgen Juel & Aslaksen, Silje, 2008. "Constitutions and the resource curse," Journal of Development Economics, Elsevier, vol. 87(2), pages 227-246, October.
    3. Laura El-Katiri, 2014. "The Guardian State and its Economic Development Model," Journal of Development Studies, Taylor & Francis Journals, vol. 50(1), pages 22-34, January.
    4. Katharina Wick & Erwin Bulte, 2006. "Contesting resources – rent seeking, conflict and the natural resource curse," Public Choice, Springer, vol. 128(3), pages 457-476, September.
    5. Halvor Mehlum & Karl Moene & Ragnar Torvik, 2006. "Cursed by Resources or Institutions?," The World Economy, Wiley Blackwell, vol. 29(8), pages 1117-1131, August.
    6. Deacon, Robert & Mueller, Bernardo, 2004. "Political Economy and Natural Resource Use," University of California at Santa Barbara, Economics Working Paper Series qt68g1n1v8, Department of Economics, UC Santa Barbara.
    7. repec:pje:journl:article15sumi is not listed on IDEAS
    8. Polterovich, Victor & Popov, Vladimir & Tonis, Alexander, 2007. "Экономическая Политика, Качество Институтов И Механизмы "Ресурсного Проклятия"
      [Economic Policy, Quality of Institutions, and Mechanisms of Resource Curse]
      ," MPRA Paper 22454, University Library of Munich, Germany.
    9. Polterovich, Victor & Popov, Vladimir & Tonis, Alexander, 2008. "Mechanisms of Resource Curse, Economic Policy and Growth," MPRA Paper 20570, University Library of Munich, Germany.
    10. Natalie Stoeckl & Michelle Esparon & Marina Farr & Aurélie Delisle & Owen Stanley, 2014. "The great asymmetric divide: An empirical investigation of the link between indigenous and non-indigenous economic systems in Northern Australia," Papers in Regional Science, Wiley Blackwell, vol. 93(4), pages 783-801, November.

    More about this item

    Keywords

    resource curse; human development; resource wealth and scarcity;

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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