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Can more be less? An experimental test of the resource curse

Author Info

Listed author(s):
  • Al-Ubaydli, Omar
  • McCabe, Kevin
  • Twieg, Peter

Abstract

Several scholars have argued that abundant natural resources can be harmful to economic performance under bad institutions and helpful when institutions are good. These arguments have either been theoretical or based on naturally-occurring variation in natural resource wealth. We test this theory using a laboratory experiment to reap the benefits of randomized control. We conduct this experiment in a virtual world (Second LifeTM) to make institutions more visceral. We find support for the theory.

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File URL: https://mpra.ub.uni-muenchen.de/55381/1/MPRA_paper_55381.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 55381.

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Date of creation: 31 Mar 2014
Handle: RePEc:pra:mprapa:55381
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Keywords: resource curse; institutions; economic development;

Other versions of this item:

Find related papers by JEL classification:
  • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
  • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
  • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
  • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts

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  28. repec:feb:natura:0059 is not listed on IDEAS
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