The natural resource curse revisited and revised: a tale of paradoxes and red herrings
Open access
Date
2006-12Type
- Working Paper
ETH Bibliography
yes
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Abstract
We critically evaluate the empirical basis for the so-called resource curse and find that, despite the topic’s popularity in economics and political science research, this apparent paradox is a red herring. The most commonly used measure of ‘resource abundance’ can be more usefully interpreted as a proxy for resource dependence’-endogenous to underlying institutional factors. In multiple estimations that combine resource bundance and dependence, institutional and constitutional variables, we find that (i) resource abundance, constitutions and institutions determine resource dependence, (ii) resource dependence does not affect growth, and (iii) resource abundance positively affects growth and institutional quality. Show more
Permanent link
https://doi.org/10.3929/ethz-a-005303746Publication status
publishedJournal / series
Economics Working Paper SeriesVolume
Publisher
ETH Zurich, Center of Economic Research (CER-ETH)Subject
Natural resource curse; Economic growth; Growth regressions; Political regimes; Institutions; ConstitutionsOrganisational unit
03635 - Bretschger, Lucas (emeritus) / Bretschger, Lucas (emeritus)
02045 - Dep. Geistes-, Sozial- u. Staatswiss. / Dep. of Humanities, Social and Pol.Sc.
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ETH Bibliography
yes
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