Governance effects on resource rent management and resource pollution

Xiaokang Wang and Ting Su

Resources Policy, 2024, vol. 98, issue C

Abstract: The issue of the resource curse has become critical for resource-rich countries in recent decades. This study empirically examines the impact of governance quality on the resource curse in 20 major resource-rich nations from 2004 to 2019. Using World Bank governance indicators, it assesses the effects of voice and accountability, government effectiveness, and control of corruption on a composite resource curse index, which includes resource rent and pollution. CS-ARDL results show that improvements in governance indicators reduce the resource curse in both the short and long term, with the largest impact seen from control of corruption. These findings highlight the crucial role of governance in addressing the resource curse.

Keywords: Resource rent; Resource pollution; Composite resource curse index; Good governance; Rich resource economies (search for similar items in EconPapers)
JEL-codes: C33 O13 Q32 Q53 Q56 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:98:y:2024:i:c:s0301420724007281

DOI: 10.1016/j.resourpol.2024.105361

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