Экономическая Политика, Качество Институтов И Механизмы "Ресурсного Проклятия"
[Economic Policy, Quality of Institutions, and Mechanisms of Resource Curse]
Sachs, Warner (1995) were among the first to claim that «resource curse» is real and that resource abundant economies do indeed grow more slowly than the others. Hundreds of papers were published since then supporting the «resource curse» thesis and offering new explanations of mechanisms and effects that may inhibit growth in resource rich economies. Several recent papers, however (Alexeev, Conrad, 2005; Stijns, 2005; Brunnschweiler, 2006) question the mere existence of the «resource curse» and make it necessary to reconsider the hypotheses about the impact of resource abundance on economic growth. This paper compares various theories of «resource curse» with a special focus on models allowing for the varying — positive or negative — impact of resources on development depending on the quality of institutions and economic policies. Several mechanisms leading to a potentially inefficient use of resources are being examined; it is demonstrated that each of these mechanism is associated with market imperfections and can be «corrected» with appropriate government policies. Empirical evidence seems to suggest that resource abundant countries have on average lower budget deficits and inflation, higher foreign exchange reserves and higher inflows of FDI. Besides, lower domestic fuel prices that are typical for resource rich countries, have a positive effect on long term growth even though they are associated with losses resulting from higher energy intensity. On top of that resource abundance allows to reduce income inequalities. So, on balance, resource wealth turns out to be conducive to growth, especially in countries with strong institutions. However, resource abundance makes democratic political regimes very unstable — they tend to gravitate towards authoritarianism. A game theoretical model is developed to show that democracy in resource abundant countries is inherently unstable and the empirical evidence on the stability of resource democracies is provided.
|Date of creation:||2007|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
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.:
- Michael Alexeev & Robert Conrad, 2009. "The Elusive Curse of Oil," The Review of Economics and Statistics, MIT Press, vol. 91(3), pages 586-598, August.
- Ben-David, Dan, 1996.
"Trade and convergence among countries,"
Journal of International Economics,
Elsevier, vol. 40(3-4), pages 279-298, May.
- Rolando Ossowski & Steven A Barnett & James Daniel & Jeffrey M. Davis, 2001. "Stabilization and Savings Funds for Nonrenewable Resources," IMF Occasional Papers 205, International Monetary Fund.
- 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.
- Robert J. Barro, 1998.
"Determinants of Economic Growth: A Cross-Country Empirical Study,"
MIT Press Books,
The MIT Press,
edition 1, volume 1, number 0262522543.
- Robert J. Barro, 1996. "Determinants of Economic Growth: A Cross-Country Empirical Study," NBER Working Papers 5698, National Bureau of Economic Research, Inc.
- R. Ahrend., 2006.
"How to Sustain Growth in a Resource Based Economy? The Main Concepts and their Application to the Russian Case,"
N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 7.
- Rudiger Ahrend, 2006. "How to Sustain Growth in a Resource Based Economy?: The Main Concepts and their Application to the Russian Case," OECD Economics Department Working Papers 478, OECD Publishing.
- 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.
- Gylfason, Thorvaldur, 2004. "Natural Resources and Economic Growth: From Dependence to Diversification," CEPR Discussion Papers 4804, C.E.P.R. Discussion Papers.
- Corden, W Max & Neary, J Peter, 1982. "Booming Sector and De-Industrialisation in a Small Open Economy," Economic Journal, Royal Economic Society, vol. 92(368), pages 825-848, December.
- 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.
- Thorvaldur Gylfason & Gylfi Zoega, 2002. "Inequality and Economic Growth: Do Natural Resources Matter?," CESifo Working Paper Series 712, CESifo Group Munich.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:22454. 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: (Joachim Winter)
If references are entirely missing, you can add them using this form.