Sarmidi, Tamat and Siong Hook, Law and Jafari, Yaghoob (2012): Resource curse: new evidence on the role of institutions.
Download (534kB) | Preview
This paper attempts to provide a probable answer to a longstanding resource curse puzzle; i.e., why resource-rich nations grow at a slower rate compared to less fortunate ones. Using an innovative threshold estimation technique, the empirical results reveal that there is a threshold effect in the natural resources – economic growth relationship. We find that the impact of natural resources is meaningful to economic growth only after a certain threshold point of institutional quality has been attained. The results also shed light on the fact that the nations that have low institutional quality depend heavily on natural resources while countries with high quality institutions are relatively less dependent on natural resources to generate growth.
|Item Type:||MPRA Paper|
|Original Title:||Resource curse: new evidence on the role of institutions|
|Keywords:||Economic development; Natural resource curse; Institutions|
|Subjects:||O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development
Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q3 - Nonrenewable Resources and Conservation > Q32 - Exhaustible Resources and Economic Development
O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture ; Natural Resources ; Energy ; Environment ; Other Primary Products
|Depositing User:||Yaghoob Jafari|
|Date Deposited:||09 Mar 2012 12:11|
|Last Modified:||14 Jun 2016 16:51|
Andersen, J.J., Aslaksen, S., 2008. Constitutions and the resource curse. Journal of Development Economics. 87(2), 227-246.
Atkinson, G., Hamilton, K., 2003. Savings, Growth and the Resource Curse Hypothesis. World Development, 31(11), 1793-1807.
Boyce, J.R., Herbert Emery J.C., 2011. Is a negative correlation between resource abundance and growth sufficient evidence that there is a "resource curse”? Resources Policy, 36(1), 1-13.
Brunnschweiler, C.N., 2008. Cursing the blessings? Natural resource abundance, institutions, and economic growth. World Development. 36(3), 399-419.
Brunnschweiler, C.N., Bulte, E.H., 2008. The resource curse revisited and revised: A tale of paradoxes and red herrings. Journal of Environmental Economics and Management 55(3), 248-264.
Brunnschweiler, C.N., Bulte, E.H., 2009. Natural resources and violent conflict: Resource abundance, dependence, and the onset of civil wars. Oxford Economic Papers. 61(4), 651-674.
Bulte, E., Damania, R., 2005. Resource intensity, institutions, and development. World Development. 33(7), 1029-1044.
Damania, R., Bulte. E., 2003. Resource for sale: Corruption, democracy and the natural resource curse, Discussion paper no. 0320. Centre for International Studies, University of Adelaide.
Frankel, J., 2010, The natural resource curse: A survey. Forthcoming in Export Perils, Brenda Shaffer, ed., (Philadelphia, PA: University of Pennsylvania Press). NBER WP No. 15836; HKS RWP10-005, Feb.
Glaeser, E.L., Porta, R.L., 2004. Do institutions cause growth? Journal of Economic Growth 9(3), 271-303.
Jonathan, I., Pritchett, L., Woolcock, M., Busby, G., 2003. The Varieties of Resource Experience. World Bank, Washington, D.C.
James, A., Aadland, D., 2011. The curse of natural resources: An empirical investigation of U.S. counties. Resource and Energy Economics. 23(2), 440-453.
Knack, S., Keefer, P., 1995, Institutions and Economic Performance: Cross-country tests using alternative institutional measures. Economics and Politics. 7, 207-227.
Kolstad, I., Søreide, T., 2009. Corruption in natural resource management: Implications for policy makers. Resources Policy. 34(4), 214-226.
Kolstad, I., Wiig, A., 2009. It's the rents, stupid! The political economy of the resource curse. Energy Policy. 37(12), 5317-5325.
Larsen, E.R., 2005. Are rich countries immune to the resource curse? Evidence from Norway's management of its oil riches. Resources Policy. 30(2), 75-86.
Mainguy, C., 2011. Natural resources and development: The gold sector in Mali. Resources Policy. 36(2), 123-131.
Papyrakis, E., Gerlagh, R., 2007. Resource abundance and economic growth in the United States. European Economic Review. 51(4), 1011-1039.
Sachs, J.D., Warner, A.M., 2001. The curse of natural resources: European Economic Review. 45(2001), 827-838.
Stevens, P., Dietsche, E., 2008. Resource curse: An analysis of causes, experiences and possible ways forward. Energy Policy. 36(1), 56-65.
Stijns, J.P., 2006. Natural resource abundance and human capital accumulation. World Development. 34(6), 1060-1083.
Van der Ploeg, F., Poelhekke. S., 2010. The pungent smell of ‘red herrings’: Subsoil assets, rents, volatility and the resource curse. Journal of Environmental Economics and Management. 60(1), 44-55.
Williams, A., 2011. Shining a light on the resource curse: An empirical analysis of the relationship between natural resources, transparency, and economic growth. World Development. 39(4), 490-505.
Yuxiang, K., Chen. Z., 2011. Resource abundance and financial development: Evidence from China. Resources Policy. 36(1), 72-79.