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Bananas, oil, and development: examining the resource curse and its transmission channels by resource type

Author

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  • Lay, Jann
  • Omar Mahmoud, Toman

Abstract

This paper examines the resource curse and its transmission channels by resource type. We review and synthesize existing theories of the transmission channels of the curse. This synthesis suggests that (1) relating the transmission channels to the characteristics of different types of resources, and (2) considering how other country characteristics, such as institutional quality and policy outcomes, affect the impact of natural resource wealth on development, would improve our understanding of the functioning of the curse. We then assess these two aspects empirically and find different transmission channels to be relevant for different types of resources. Furthermore, we illustrate the interaction between other country characteristics and the curse.

Suggested Citation

  • Lay, Jann & Omar Mahmoud, Toman, 2004. "Bananas, oil, and development: examining the resource curse and its transmission channels by resource type," Kiel Working Papers 1218, Kiel Institute for the World Economy (IfW).
  • Handle: RePEc:zbw:ifwkwp:1218
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    References listed on IDEAS

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    Cited by:

    1. Rabah Arezki & Frederick van der Ploeg, 2011. "Do Natural Resources Depress Income Per Capita?," Review of Development Economics, Wiley Blackwell, vol. 15(3), pages 504-521, August.
    2. Vittorio Daniele, 2011. "Natural Resources and the 'Quality' of Economic Development," Journal of Development Studies, Taylor & Francis Journals, vol. 47(4), pages 545-573.
    3. Rabah Arezki & Frederik van der Ploeg, 2007. "Can the Natural Resource Curse Be Turned Into a Blessing? The Role of Trade Policies and Institutions," IMF Working Papers 07/55, International Monetary Fund.
    4. Janda, Karel & Quarshie, Gregory, 2017. "Natural Resources, Oil and Economic Growth in Sub-Saharan Africa," MPRA Paper 76748, University Library of Munich, Germany.
    5. van der Ploeg, Frederick, 2006. "Challenges and Opportunities for Resource Rich Economies," CEPR Discussion Papers 5688, C.E.P.R. Discussion Papers.
    6. Janda, Karel & Quarshie, Gregory, 2017. "Modelling Natural Resources, Oil and Economic Growth in Africa," MPRA Paper 76749, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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