The Resource Curse Hypothesis Revisited: Evidence from Asian Economies
Hiroyuki Taguchi and
Bulletin of Applied Economics, 2016, vol. 3, issue 2, 31-42
This article examines the applicability of resource curse hypothesis focusing on Asian economies for two different phases for 1980-1995 and for 1995-2014. Its analytical contribution is to trace two kinds of crowding-out logics behind the resource curse: the Dutch Disease logic for resource abundance to crowd out manufacturing activities, and the non-Hartwick-rule logic to crowd out savings and investment, by conducting the statistical tests of Granger causality and impulse responses under vector auto-regression estimation. The empirical outcomes identified the existence of the Dutch Disease in 1980- 1995, but not in 1995-2014, and also represented some approach toward the Hartwickrule in 1995-2014, but not in 1980-1995. Thus, the resource curse hypothesis does not fit with the recent Asian economies. One of the interpretations on the transformation of the resource effects from a curse to a blessing could come from the improvement of institutional quality and the progress in policy efforts in the recent Asian economies.
Keywords: Resource curse; Asian economies; crowding-out; Dutch Disease; Hartwick rule and institutional quality. (search for similar items in EconPapers)
JEL-codes: F43 O11 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:rmk:rmkbae:v:3:y:2016:i:2:p:31-42
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