Resource Curse or not: A Question of Appropriability
2007 (English)In: Scandinavian Journal of Economics, ISSN 0347-0520, E-ISSN 1467-9442, Vol. 109, no 3, 593-617 p.Article in journal (Refereed) Published
Whether natural resources are good or bad for a country's development are shown to depend on the interaction between institutional setting and, crucially, the types of resources possessed by the country. Some natural resources are, for economical and technical reasons, more likely to cause problems such as rent-seeking and conflicts than others. This potential problem can, however, be countered by good institutional quality. In contrast to the traditional resource curse hypothesis, we show the impact of natural resources on economic growth to be non-monotonic in institutional quality, and increasingly so for certain types of resources. In particular, countries rich in minerals are cursed only if they have low-quality institutions, while the curse is reversed if institutions are sufficiently good. Furthermore, if countries are rich in diamonds and precious metals, these effects—both positive and negative—are larger.
Place, publisher, year, edition, pages
2007. Vol. 109, no 3, 593-617 p.
Natural resources, appropriability, property rights, institutions, economic growth, development, O40, O57, P16, O13, N50
IdentifiersURN: urn:nbn:se:su:diva-23532DOI: 10.1111/j.1467-9442.2007.00509.xOAI: oai:DiVA.org:su-23532DiVA: diva2:192521