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Resource Curse, Institutions and Non-Resource Sector

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  • Libman, Alexander

Abstract

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.

Suggested Citation

  • Libman, Alexander, 2013. "Resource Curse, Institutions and Non-Resource Sector," MPRA Paper 53563, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:53563
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    File URL: https://mpra.ub.uni-muenchen.de/53563/1/MPRA_paper_53563.pdf
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    References listed on IDEAS

    as
    1. Halvor Mehlum & Karl Moene & Ragnar Torvik, 2006. "Institutions and the Resource Curse," Economic Journal, Royal Economic Society, vol. 116(508), pages 1-20, January.
    2. Libman, Alexander, 2013. "Natural resources and sub-national economic performance: Does sub-national democracy matter?," Energy Economics, Elsevier, vol. 37(C), pages 82-99.
    3. Robinson, James A. & Torvik, Ragnar & Verdier, Thierry, 2006. "Political foundations of the resource curse," Journal of Development Economics, Elsevier, vol. 79(2), pages 447-468, April.
    4. Collier, Paul & Hoeffler, Anke, 2009. "Testing the neocon agenda: Democracy in resource-rich societies," European Economic Review, Elsevier, vol. 53(3), pages 293-308, April.
    5. Bankole Fred Olayele, 2010. "The Resource Curse: A State and Provincial Analysis," Working Papers 2010-01, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
    6. Fidel Perez-Sebastian & Ohad Raveh, 2013. "The natural Resource Curse, Fiscal Decentralization, and Agglomeration Economies," OxCarre Working Papers 112, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
    7. repec:cup:apsrev:v:87:y:1993:i:03:p:567-576_10 is not listed on IDEAS
    8. Alexander Libman, 2012. "Sub-national political regimes and asymmetric fiscal decentralization," Constitutional Political Economy, Springer, vol. 23(4), pages 302-336, December.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    resource curse; institutions; non-resource sector;

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)

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