Extending the concept of the resource curse: natural resources and public spending on health
This paper extends the concept of the resource curse by studying whether and through which transmission channels natural resource wealth affects social spending. Even though the availability of vast natural capital reserves has commonly been linked to the neglect of human development, most of the literature has continued to focus on economic performance. This paper is the first to empirically explore the link between natural resource wealth and public health expenditures in light of the hypothesis that the availability of resource wealth as a source of unearned state income enhances state autonomy, which leads to policies that fail to prioritize human development. Using a large panel dataset of world countries covering the period from 1991 to 2010, we find a robust, significant inverse relationship between natural resource dependence, and even abundance, and public health spending over time. The effect remains significant after controlling for state autonomy, volatility, and other factors. These findings have implications for national authorities as well as the extractive industry. Governments should be made accountable for natural resource wealth and correct taxation could provide additional resources, earmarked for health. The extractive industry could increase their investments in sustainable Social Corporate Responsibility operations, specifically in the health sector.
|Date of creation:||Jan 2014|
|Contact details of provider:|| Postal: Prinsstraat 13, B-2000 Antwerp|
Phone: +32-(0)3-265 5770
Fax: +32-(0)3-265 5771
Web page: http://www.uantwerpen.be/iob
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Getzen, Thomas E., 2000. "Health care is an individual necessity and a national luxury: applying multilevel decision models to the analysis of health care expenditures," Journal of Health Economics, Elsevier, vol. 19(2), pages 259-270, March.
- Goderis, Benedikt & Malone, Samuel W., 2009.
"Natural Resource Booms and Inequality: Theory and Evidence,"
17317, University Library of Munich, Germany.
- Benedikt Goderis & Samuel W. Malone, 2011. "Natural Resource Booms and Inequality: Theory and Evidence," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113, pages 388-417, 06.
- Benedikt Goderis & Samuel W. Malone, 2008. "Natural Resource Boom and Inequality: Theory and Evidence," CSAE Working Paper Series 2008-11, Centre for the Study of African Economies, University of Oxford.
- Benedikt Goderis & Samuel W Malone, 2008. "Natural Resource Booms and Inequality: Theory and Evidence," OxCarre Working Papers 008, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
- Fabrizio Carmignani, "undated".
"Development outcomes, resource abundance,and the transmission through inequality,"
MRG Discussion Paper Series
3610, School of Economics, University of Queensland, Australia.
- Carmignani, Fabrizio, 2013. "Development outcomes, resource abundance, and the transmission through inequality," Resource and Energy Economics, Elsevier, vol. 35(3), pages 412-428.
- Desmet, Klaus & Ortuño-Ortín, Ignacio & Wacziarg, Romain, 2012.
"The political economy of linguistic cleavages,"
Journal of Development Economics,
Elsevier, vol. 97(2), pages 322-338.
- Klaus Desmet & Ignacio Ortuño-Ortín & Romain Wacziarg, 2011. "The Political Economy of Linguistic Cleavages," Working Papers VIVES Research Centre for Regional Economics 20, KU Leuven, Faculty of Economics and Business, VIVES Research Centre for Regional Economics.
- Mick Moore, 2001. "Political Underdevelopment: What causes ‘bad governance’," Public Management Review, Taylor & Francis Journals, vol. 3(3), pages 385-418, September.
- Ian Bannon & Paul Collier, 2003. "Natural Resources and Violent Conflict : Options and Actions," World Bank Publications, The World Bank, number 15047.
- Carmignani, Fabrizio & Avom, Desire, 2010. "The social development effects of primary commodity export dependence," Ecological Economics, Elsevier, vol. 70(2), pages 317-330, December.
- Roland Hodler, 2004.
"The Curse of Natural Resources in Fractionalized Countries,"
dp0404, Universitaet Bern, Departement Volkswirtschaft.
- Hodler, Roland, 2006. "The curse of natural resources in fractionalized countries," European Economic Review, Elsevier, vol. 50(6), pages 1367-1386, August.
- Papyrakis, Elissaios & Gerlagh, Reyer, 2004. "The resource curse hypothesis and its transmission channels," Journal of Comparative Economics, Elsevier, vol. 32(1), pages 181-193, March.
- Gylfason, Thorvaldur, 2001.
"Natural resources, education, and economic development,"
European Economic Review,
Elsevier, vol. 45(4-6), pages 847-859, May.
- Gylfason, Thorvaldur, 2000. "Natural Resources, Education, and Economic Development," CEPR Discussion Papers 2594, C.E.P.R. Discussion Papers.
- Ruikand Marcus Fum & Roland Hodler, 2009.
"Natural Resources and Income Equality: the role of Ethnic divisions,"
OxCarre Working Papers
023, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
- Fum, Ruikang Marcus & Hodler, Roland, 2010. "Natural resources and income inequality: The role of ethnic divisions," Economics Letters, Elsevier, vol. 107(3), pages 360-363, June.
- Anca Cotet & Kevin K. Tsui, 2010.
"Oil and Conflict: What Does the Cross-Country Evidence Really Show?,"
201002, Ball State University, Department of Economics, revised Mar 2010.
- Anca M. Cotet & Kevin K. Tsui, 2013. "Oil and Conflict: What Does the Cross Country Evidence Really Show?," American Economic Journal: Macroeconomics, American Economic Association, vol. 5(1), pages 49-80, January.
- Thorvaldur Gylfason & Gylfi Zoega, 2002. "Inequality and Economic Growth: Do Natural Resources Matter?," CESifo Working Paper Series 712, CESifo Group Munich.
- Graham A. Davis, 2013. "Replicating Sachs and Warner's Working Papers on the Resource Curse," Journal of Development Studies, Taylor & Francis Journals, vol. 49(12), pages 1615-1630, December.
- Clara Delavallade, 2006. "Corruption and distribution of public spending in developing countries," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 30(2), pages 222-239, June.
- Gylfason, Thorvaldur & Zoega, Gylfi, 2001.
"Natural Resources and Economic Growth: The Role of Investment,"
CEPR Discussion Papers
2743, C.E.P.R. Discussion Papers.
- Thorvaldur Gylfason & Gylfi Zoega, 2006. "Natural Resources and Economic Growth: The Role of Investment," The World Economy, Wiley Blackwell, vol. 29(8), pages 1091-1115, 08.
- Thorvaldur Gylfason & Gylfi Zoega, 2002. "Natural Resources And Economic Growth: The Role Of Investment," Working Papers Central Bank of Chile 142, Central Bank of Chile.
- Thorvaldur Gylfason & Gylfi Zoega, 2004. "Natural Resources and Economic Growth: The Role of Investment," DEGIT Conference Papers c009_011, DEGIT, Dynamics, Economic Growth, and International Trade.
- Thorvaldur Gylfason & Gylfi Zoega, 2001. "Natural Resources and Economic Growth: The Role of Investment," EPRU Working Paper Series 01-02, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
- Sachs, J-D & Warner, A-M, 1995.
"Natural Resource Abundance and Economic Growth,"
517a, Harvard - Institute for International Development.
- Brunnschweiler, Christa N. & Bulte, Erwin H., 2008.
"The resource curse revisited and revised: A tale of paradoxes and red herrings,"
Journal of Environmental Economics and Management,
Elsevier, vol. 55(3), pages 248-264, May.
- Christa N. Brunnschweiler & Erwin H. Bulte, 2006. "The Resource Curse Revisited and Revised: A Tale of Paradoxes and Red Herrings," CER-ETH Economics working paper series 06/61, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
- repec:oxf:wpaper:wps/2007-15 is not listed on IDEAS
- Philip Keefer & Stuti Khemani, 2005. "Democracy, Public Expenditures, and the Poor: Understanding Political Incentives for Providing Public Services," World Bank Research Observer, World Bank Group, vol. 20(1), pages 1-27.
- Gylfason, Thorvaldur, 2008. "Development and Growth in Mineral-Rich Countries," CEPR Discussion Papers 7031, C.E.P.R. Discussion Papers.
- Vittorio Daniele, 2011. "Natural Resources and the 'Quality' of Economic Development," Journal of Development Studies, Taylor & Francis Journals, vol. 47(4), pages 545-573.
- Jonathan Isham & Michael Woolcock & Lant Pritchett & Gwen Busby, 2005. "The Varieties of Resource Experience: Natural Resource Export Structures and the Political Economy of Economic Growth," World Bank Economic Review, World Bank Group, vol. 19(2), pages 141-174.
- Sanjeev Gupta & Marijn Verhoeven & Erwin R. Tiongson, 2003. "Public spending on health care and the poor," Health Economics, John Wiley & Sons, Ltd., vol. 12(8), pages 685-696.
- Clemente, Jesus & Marcuello, Carmen & Montanes, Antonio & Pueyo, Fernando, 2004. "On the international stability of health care expenditure functions: are government and private functions similar?," Journal of Health Economics, Elsevier, vol. 23(3), pages 589-613, May.
- Bjørnskov, Christian, 2010. "Do elites benefit from democracy and foreign aid in developing countries?," Journal of Development Economics, Elsevier, vol. 92(2), pages 115-124, July.
- Gylfason, Thorvaldur & Herbertsson, Tryggvi Thor & Zoega, Gylfi, 1999. "A Mixed Blessing," Macroeconomic Dynamics, Cambridge University Press, vol. 3(02), pages 204-225, June.
- Murthy, Vasudeva N.R. & Okunade, Albert A., 2009. "The core determinants of health expenditure in the African context: Some econometric evidence for policy," Health Policy, Elsevier, vol. 91(1), pages 57-62, June.
When requesting a correction, please mention this item's handle: RePEc:iob:wpaper:201401. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Hans De Backer)
If references are entirely missing, you can add them using this form.