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The Resource Curse and its Potential Reversal

  • Boschini, Anne

    ()

    (Department of Economics, Stockholm University.)

  • Pettersson, Jan

    ()

    (Department of Economics)

  • Roine, Jesper

    ()

    (SITE, Stockholm School of Economics, and IZA)

Several recent papers suggest that the negative association between natural resource intensity and economic growth can be reversed if institutional quality is high enough. We try to understand this result in more detail by decomposing the resource measure, using alternative measures of both resources and institutions, and by studying different time periods. While an institutional reversal is present in many specifications, only ores and metals interacted with the ICRG measure of institutional quality consistently have a negative growth effect but a positive interaction that turns the curse around when institutions are good enough.

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Paper provided by Uppsala University, Department of Economics in its series Working Paper Series with number 2012:17.

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Length: 46 pages
Date of creation: 04 Nov 2012
Date of revision:
Handle: RePEc:hhs:uunewp:2012_017
Contact details of provider: Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
Web page: http://www.nek.uu.se/
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