Natural Resources, Conflict and Growth: Uncovering the Transmission Mechanism

Shahida Wizarat

Asian Economic and Financial Review, 2014, vol. 4, issue 8, 987-1000

Abstract: Using panel data and GMM estimators for the developed countries (DCs) and the less developed countries (LDCs) we find a positive and significant impact of conflict on DC GDP and a negative and significant impact on LDC GDP during the period 1980-2009. Our result on conflict is robust irrespective of model specification and country categorization. Both fuel and ores and minerals have a positive and significant impact on GDP in the LDCs in some specifications contradicting the predominant ‘resource curse’ view. While openness has a negative and significant impact on GDP in the LDCs. Government expenditure has a negative and significant impact in DCs in one specification, which is an interesting finding in view of the social expenditure reductions in the DCs post 9/11. The use of panel data ensures that non-stationarity of the variables is not a problem and the use of GMM estimators yields estimates that are not biased on account of endogeneity.

Keywords: GDP; Conflict; Resource abundance; Resource curse; Dutch disease. (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations:

Downloads: (external link)
https://archive.aessweb.com/index.php/5002/article/view/1229/1761 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:asi:aeafrj:v:4:y:2014:i:8:p:987-1000:id:1229

Access Statistics for this article

More articles in Asian Economic and Financial Review from Asian Economic and Social Society
Bibliographic data for series maintained by Robert Allen ().