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The Natural Resource Curse and Economic Transition


  • Michael Alexeev

    () (Indiana University)

  • Robert Conrad

    () (Terry Sanford School of Public Policy and Department of Economics, Duke University)


Using cross-country regressions, we examine the relationship between “point-source” resource abundance and economic growth, quality of institutions, investment in human and physical capital, and social welfare (life expectancy and infant mortality). Contrary to most literature, we find little evidence of natural resource curse outside of the economies in transition. In the economies in transition, there is some evidence that natural resource wealth is associated with higher infant mortality. This negative effect, however, exists only relative to other resource rich countries. Compared to other economies in transition, natural resource abundant transitional economies are not worse off with respect to our indicators.

Suggested Citation

  • Michael Alexeev & Robert Conrad, 2009. "The Natural Resource Curse and Economic Transition," Caepr Working Papers 2009-018, Center for Applied Economics and Policy Research, Economics Department, Indiana University Bloomington.
  • Handle: RePEc:inu:caeprp:2009-018

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    References listed on IDEAS

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    Cited by:

    1. Havranek, Tomas & Horvath, Roman & Zeynalov, Ayaz, 2016. "Natural Resources and Economic Growth: A Meta-Analysis," World Development, Elsevier, vol. 88(C), pages 134-151.
    2. Alexeev, Michael & Chernyavskiy, Andrey, 2015. "Taxation of natural resources and economic growth in Russia's regions," Economic Systems, Elsevier, vol. 39(2), pages 317-338.
    3. Pomfret, Richard, 2012. "Resource management and transition in Central Asia, Azerbaijan and Mongolia," Journal of Asian Economics, Elsevier, vol. 23(2), pages 146-156.
    4. Michael Alexeev & Yao-Yu Chih, 2017. "Oil Price Shocks and Economic Growth in the Us," Caepr Working Papers 2017-011 Classification-Q, Center for Applied Economics and Policy Research, Economics Department, Indiana University Bloomington.
    5. Mohammad Reza Farzanegan & Marcel Thum, 2017. "Oil Dependency and Quality of Education: New Empirical Evidence," MAGKS Papers on Economics 201745, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    6. repec:pal:compes:v:59:y:2017:i:3:d:10.1057_s41294-017-0028-2 is not listed on IDEAS
    7. Roman Horváth & Ayaz Zeynalov, 2014. "The Natural Resource Curse in Post-Soviet Countries : The Role of Institutions and Trade Policies," Working Papers 341, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    8. Mouna Gammoudi & Mondher Cherif & Simplice Asongu, 2016. "FDI and Growth in the MENA countries: Are the GCC countries Different?," Working Papers 16/015, African Governance and Development Institute..
    9. Dauvin, Magali & Guerreiro, David, 2017. "The Paradox of Plenty: A Meta-Analysis," World Development, Elsevier, vol. 94(C), pages 212-231.
    10. repec:eee:jrpoli:v:53:y:2017:i:c:p:164-172 is not listed on IDEAS
    11. Horváth, Roman & Zeynalov, Ayaz, 2016. "Natural resources, manufacturing and institutions in post-Soviet countries," Resources Policy, Elsevier, vol. 50(C), pages 141-148.
    12. Petar Stankov, 2010. "Deregulation, Economic Growth and Growth Acceleration," CERGE-EI Working Papers wp424, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    13. Bildirici, Melike Elif & Kayıkçı, Fazıl, 2013. "Effects of oil production on economic growth in Eurasian countries: Panel ARDL approach," Energy, Elsevier, vol. 49(C), pages 156-161.
    14. Anca Cotet & Kevin K. Tsui, 2010. "Resource Curse or Malthusian Trap? Evidence from Oil Discoveries and Extractions," Working Papers 201001, Ball State University, Department of Economics, revised Mar 2010.
    15. Uzcátegui, Carolina & Solano, Javier & Figueroa, Paulina, 2016. "Perspectiva sobre la sostenibilidad de los recursos naturales a largo plazo: caso industria camaronera ecuatoriana
      [Perspective on the sustainability of natural resources in the long term: shrimp i
      ," MPRA Paper 73690, University Library of Munich, Germany, revised 31 Aug 2016.

    More about this item

    JEL classification:

    • P27 - Economic Systems - - Socialist Systems and Transition Economies - - - Performance and Prospects
    • P28 - Economic Systems - - Socialist Systems and Transition Economies - - - Natural Resources; Environment
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

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