On the Good and Bad of Natural Resource, Corruption, and Economic Growth Nexus

Chandan Sharma and Ritesh Kumar Mishra ()
Additional contact information
Ritesh Kumar Mishra: University of Delhi

Environmental & Resource Economics, 2022, vol. 82, issue 4, No 5, 889-922

Abstract: Abstract The empirical finding that countries endowed with vast reserves of natural resources are expected to experience slower economic growth – the resource curse hypothesis – has sparked debate in the literature about whether natural resources are a curse or a boon. In this study, we re-investigate the natural resource, corruption and growth nexus by using a relatively longer dataset for a panel of countries. Unlike previous attempts, we take into account the potential endogeneity and asymmetric effect in our analysis by applying a recently developed panel quantile estimator. We also focus on the role of corruption in influencing the impact of natural resources on economic growth. Broadly the findings are indicative of an asymmetric effect of resources as the sign and magnitude of natural resources’ impact on economic growth varies over different income quantiles. Although the overall results are mixed, but the results based on fuel export and oil–gas rents as measures of resource endowment are consistent with the ‘resource curse’ hypothesis. Nonetheless, the findings suggest that corruption is critical in determining the marginal impact of natural resources on growth and in many cases, it has effectively transformed the negative effects of natural resources to positive effects in low-to-middle-income countries.

Keywords: Resource curse; Economic growth; Corruption; Panel quantile regression (search for similar items in EconPapers)
JEL-codes: D73 O13 Q33 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
http://link.springer.com/10.1007/s10640-022-00694-x Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:kap:enreec:v:82:y:2022:i:4:d:10.1007_s10640-022-00694-x

Ordering information: This journal article can be ordered from
http://www.springer. ... al/journal/10640/PS2

DOI: 10.1007/s10640-022-00694-x

Access Statistics for this article

Environmental & Resource Economics is currently edited by Ian J. Bateman

More articles in Environmental & Resource Economics from Springer, European Association of Environmental and Resource Economists Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().