Resource Curses Finance. Can Humans Stop It?

Tamat Sarmidi, Siong Hook Law and Norlida Hanim Mohd Salleh

Chapter 3 in Emerging Markets and Financial Resilience, 2013, pp 38-50 from Palgrave Macmillan

Abstract: Abstract Natural resource-rich countries shall enjoy better economic growth and socio-economic welfare than those that are less fortunate. Natural resources that have been endowed to these countries should be a genuine source of fortune and happiness. Surprisingly, everyday experiences and empirical studies show the reverse (Frankel, 2010). It seems that natural resource abundance is detrimental to economic growth. This puzzling phenomenon is known as the natural resource curse (NRC) hypothesis. In the past decades it has attracted voluminous research papers that try to empirically show the prevalence of the NRC and at the same time attempt to provide analytical explanations of why the NRC existed in the resource-abundant economies (Sachs & Warner, 1995; Leite & Weidmann, 1999; Gylfason, 2001; Gylfason & Zoega, 2006). In the literature, it is suggested that there are at least three theories explaining the NRC: ‘Dutch disease’ models (Sachs & Warner, 1999), rent-seeking phenomena (Tornell & Lane, 2000), and institutional explanations (Sachs & Warner, 1995, 2001). However, the empirical findings from these studies are still far from conclusive.

Keywords: Natural Resource; Human Capital; Financial Development; Environmental Kuznet Curve; World Development Indicator (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:pal:palchp:978-1-137-26661-3_3

Ordering information: This item can be ordered from
http://www.palgrave.com/9781137266613

DOI: 10.1057/9781137266613_3

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().