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The Resource Curse and its Potential Reversal

Anne Boschini (), Jan Pettersson () and Jesper Roine ()

No 2012:17, Working Paper Series from Uppsala University, Department of Economics

Abstract: Several recent papers suggest that the negative association between natural resource intensity and economic growth can be reversed if institutional quality is high enough. We try to understand this result in more detail by decomposing the resource measure, using alternative measures of both resources and institutions, and by studying different time periods. While an institutional reversal is present in many specifications, only ores and metals interacted with the ICRG measure of institutional quality consistently have a negative growth effect but a positive interaction that turns the curse around when institutions are good enough.

Keywords: Natural Resources; Minerals; Fuels; Resource Curse; Property Rights; Institutions; Economic Growth; Development (search for similar items in EconPapers)
JEL-codes: N50 O13 O40 O57 P16 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-res
Date: 2012-11-04
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