The resource curse exorcised: Evidence from a panel of countries

Brock Smith

Journal of Development Economics, 2015, vol. 116, issue C, 57-73

Abstract: This paper evaluates the impact of major natural resource discoveries since 1950 on GDP per capita. Using panel fixed-effects estimation and resource discoveries in countries that were not previously resource-rich as a plausibly exogenous source of variation, I find a positive effect on GDP per capita levels following resource exploitation that persists in the long term. Results vary significantly between OECD and non-OECD treatment countries, with effects concentrated within the non-OECD group. I further test GDP effects with synthetic control analysis on each individual treated country, yielding results consistent with the average effects found with the fixed-effects model.

Keywords: Natural resource curse; GDP regressions; Synthetic controls; Oil discoveries (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (170)

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Related works:
Working Paper: The Resource Curse Exorcised: Evidence from a Panel of Countries (2015)
Working Paper: The Resource Curse Exorcised: Evidence from a Panel of Countries (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:deveco:v:116:y:2015:i:c:p:57-73

DOI: 10.1016/j.jdeveco.2015.04.001

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