The Resource Curse and its Potential Reversal

Several recent papers suggest that the negative association between natural resource intensity and economic growth can be reversed if institutional quality is high enough. We try to understand this result in more detail by decomposing the resource measure, using alternative measures of both resource...

Full description

Saved in:
Bibliographic Details
Published in:World development 2013-03, Vol.43, p.19-41
Main Authors: Boschini, Anne, Pettersson, Jan, Roine, Jesper
Format: Article
Language:English
Subjects:
development
Economic growth
fuels
institutions
minerals
Natural resources
Political risk
property rights
Quality
resource curse
Studies
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Several recent papers suggest that the negative association between natural resource intensity and economic growth can be reversed if institutional quality is high enough. We try to understand this result in more detail by decomposing the resource measure, using alternative measures of both resources and institutions, and by studying different time periods. While an institutional reversal is present in many specifications, only ores and metals interacted with the ICRG measure of institutional quality consistently have a negative growth effect but a positive interaction that turns the curse around when institutions are good enough.
ISSN:0305-750X
1873-5991
1873-5991
DOI:10.1016/j.worlddev.2012.10.007