Terms of Trade and Growth of Resource Economies: A Tale of Two Countries

Augustin Fosu (afosu@isser.edu.gh)

No wp-2011-028, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: The current paper demonstrates a dichotomy of the growth response to changes in the barter terms of trade, employing as case studies the two African countries, Botswana and Nigeria. Using distributed-lag analysis, the paper finds that the effect of terms of trade on output is positive and negative for the two countries, respectively. I interpret these results as supportive of the 'resource curse' hypothesis for Nigeria, but not for Botswana. I further argue that the superior institutional quality in Botswana, relative to Nigeria, is likely responsible for the contrasting results.

Keywords: Economic development; Institutional economics; International trade; Natural resources; Trade regulation (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
https://www.wider.unu.edu/sites/default/files/wp2011-028.pdf (application/pdf)

Related works:
Working Paper: Terms of Trade and Growth of Resource Economies: A Tale of Two Countries (2011)
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:unu:wpaper:wp-2011-028

Access Statistics for this paper

More papers in WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER) Contact information at EDIRC.
Bibliographic data for series maintained by Siméon Rapin (repec@wider.unu.edu).