Resource Curse, Institutions and Non-Resource Sector

Libman, Alexander (2013): Resource Curse, Institutions and Non-Resource Sector.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: resource curse; institutions; non-resource sector
• Subjects: D - Microeconomics > D7 - Analysis of Collective Decision-Making > D73 - Bureaucracy ; Administrative Processes in Public Organizations ; Corruption; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q3 - Nonrenewable Resources and Conservation > Q38 - Government Policy

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