Resource Curse, Institutions and Non-Resource Sector
This note presents a simple model of how resource rents can affect economic growth of a region of a centralized country, where sub-national governments have no authority over resource industries. The growth effect of resources appears to be conditional on the quality of institutions in the non-resource sector. Thus, even if the sub-national government does not affect the resource sector directly,the quality of institutions set by this government still influences whether resource boom has a positive or a negative effect on the economic growth.
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- Halvor Mehlum & Karl Moene & Ragnar Torvik, 2006.
"Institutions and the Resource Curse,"
Royal Economic Society, vol. 116(508), pages 1-20, 01.
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- Halvor Mehlum & Karl Moene & Ragnar Torvik, 2002. "Institutions and the resource curse," Development and Comp Systems 0210003, EconWPA.
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