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Natural Resources and State Fragility

Anthony Venables and Paul Collier

No 31, OxCarre Working Papers from Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford

Abstract: This paper provides an overview of the relationships between natural resources, governance, and economic performance. The relationships run in both directions, with resources potentially altering the quality of governance, and governance being particularly important for resource poor countries. Both these relationships have threshold effects; if governance quality is above some level then natural resources can lead to further improvement, while below the threshold further deterioration may take place. Theoretical and empirical work is reviewed, the interactions between the relationships discussed, and policy implications outlined.

Date: 2009-11-05
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