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Testing the Natural Resource Curse Hypothesis in Indonesia: Evidence at the Regional Level


  • Ahmad Komarulzaman

    () (Department of Economics, Padjadjaran University)

  • Armida Alisjahbana

    (Department of Economics, Padjadjaran University)


Resource curse literatures explain that countries abundant with natural resources tend to grow slower. This hypothesis is relevant for Indonesia as it is a country rich in natural resources. This paper tries to investigate empirically the relationship between resources abundance and its impact on economic development at the regional level using cross section regression approach. The regional financial data from ministry of finance are combined with regional specific data from BPS to seek the pattern. The paper will shed light on whether resources rich regions in Indonesia are trapped in this curse.

Suggested Citation

  • Ahmad Komarulzaman & Armida Alisjahbana, 2006. "Testing the Natural Resource Curse Hypothesis in Indonesia: Evidence at the Regional Level," Working Papers in Economics and Development Studies (WoPEDS) 200602, Department of Economics, Padjadjaran University, revised Aug 2006.
  • Handle: RePEc:unp:wpaper:200602

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    References listed on IDEAS

    1. Brunnschweiler, Christa N., 2008. "Cursing the Blessings? Natural Resource Abundance, Institutions, and Economic Growth," World Development, Elsevier, vol. 36(3), pages 399-419, March.
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    Cited by:

    1. Abou-Ali, Hala & Abdelfattah, Yasmine M., 2013. "Integrated paradigm for sustainable development: A panel data study," Economic Modelling, Elsevier, vol. 30(C), pages 334-342.

    More about this item


    Natural resource rent; resource curse hypothesis; Indonesia;

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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