Resource shocks, firm obstacles, and local business in Africa

Jamie Bologna Pavlik and Amanda Ross

Southern Economic Journal, 2025, vol. 92, issue 2, 218-271

Abstract: The negative correlation between growth and natural resource abundance is widely studied in the resource curse literature. We add to this literature by examining the heterogeneous effect of resource rents on the obstacles faced by different sized firms. We find small firms experience more setbacks across a range of categories—including corruption—in response to positive exogenous resource shocks while large firms tend to benefit. These results are robust across a number of specifications as well as a placebo analysis where resource shocks are randomly assigned. Our findings contribute to our understanding of how resource rents exacerbate the existing difficulties faced by small firms in the developing world.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/soej.12742

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:wly:soecon:v:92:y:2025:i:2:p:218-271

Access Statistics for this article

More articles in Southern Economic Journal from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().