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Did Botswana Escape from the Resource Curse?

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  • Atsushi Iimi

Abstract

Botswana is typical of the countries that are endowed with abundant natural resources. Although it is commonly accepted that resource-rich economies tend to fail in accelerating growth, Botswana has experienced the most remarkable economic performance in the region. Using the latest cross-country data, this study empirically readdresses the question of whether resource abundance can contribute to growth. It finds that governance determines the extent to which the growth effects of resource wealth can materialize. In developing countries in particular, the quality of regulation, such as the predictability of changes of regulations, and anticorruption policies, such as transparency and accountability in the public sector, are most important for effective natural resource management and growth.

Suggested Citation

  • Atsushi Iimi, 2006. "Did Botswana Escape from the Resource Curse?," IMF Working Papers 06/138, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:06/138
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    Citations

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    Cited by:

    1. Williams, Andrew, 2011. "Shining a Light on the Resource Curse: An Empirical Analysis of the Relationship Between Natural Resources, Transparency, and Economic Growth," World Development, Elsevier, vol. 39(4), pages 490-505, April.
    2. Mainguy, Claire, 2011. "Natural resources and development: The gold sector in Mali," Resources Policy, Elsevier, vol. 36(2), pages 123-131, June.
    3. Roberto Álvarez E. & J. Rodrigo Fuentes S., 2006. "El “Síndrome Holandés”: Teoría y Revisión de la Experiencia Internacional," Notas de Investigación Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 9(3), pages 97-108, December.
    4. Hailu, Degol & Kipgen, Chinpihoi, 2017. "The Extractives Dependence Index (EDI)," Resources Policy, Elsevier, vol. 51(C), pages 251-264.
    5. repec:agr:journl:v:3(612):y:2017:i:3(612):p:173-192 is not listed on IDEAS
    6. Frankel, Jeffrey A., 2010. "The Natural Resource Curse: A Survey," Scholarly Articles 4454156, Harvard Kennedy School of Government.
    7. Frankel, Jeffrey A., 2012. "The Natural Resource Curse: A Survey of Diagnoses and Some Prescriptions," Scholarly Articles 8694932, Harvard Kennedy School of Government.
    8. Klaver Mark & Trebilcock Michael, 2011. "Chinese Investment in Africa," The Law and Development Review, De Gruyter, vol. 4(1), pages 168-217, September.
    9. Olivier Basdevant, 2008. "Are Diamonds Forever? Using the Permanent Income Hypothesis to Analyze Botswana’s Reliance on Diamond Revenue," IMF Working Papers 08/80, International Monetary Fund.
    10. Pegg, Scott, 2010. "Is there a Dutch disease in Botswana?," Resources Policy, Elsevier, vol. 35(1), pages 14-19, March.
    11. repec:pje:journl:article15sumi is not listed on IDEAS
    12. Stevens, Paul & Dietsche, Evelyn, 2008. "Resource curse: An analysis of causes, experiences and possible ways forward," Energy Policy, Elsevier, vol. 36(1), pages 56-65, January.
    13. Idrobo Nicolás & Mejía Daniel & Tribin Ana María, 2014. "Illegal Gold Mining and Violence in Colombia," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 20(1), pages 83-111, January.
    14. Mary-Françoise Renard, 2011. "Working Paper 126 - China’s Trade and FDI in Africa," Working Paper Series 297, African Development Bank.
    15. Estrades, Carmen & Llambí, Cecilia & Perera, Marcelo & Rovira, Flavia, 2016. "Large-scale mining in a small developing country: Macroeconomic impacts of revenue allocation policies," Resources Policy, Elsevier, vol. 49(C), pages 433-443.
    16. Juan P Trevino, 2011. "Oil-Price Boom and Real Exchange Rate Appreciation; Is there Dutch Disease in the Cemac?," IMF Working Papers 11/268, International Monetary Fund.
    17. Farhadi, Minoo & Islam, Md. Rabiul & Moslehi, Solmaz, 2015. "Economic Freedom and Productivity Growth in Resource-rich Economies," World Development, Elsevier, vol. 72(C), pages 109-126.
    18. Chandra, Vandana & Osorio Rodarte, Israel, 2009. "Options for Income-Enhancing Diversification in Burkina Faso," MPRA Paper 20928, University Library of Munich, Germany.

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