The Natural Resource Curse Revisited and Revised
Brunnschweiler, Christa N.
Bulte, Erwin H.
- Working Paper
We critically evaluate the empirical basis for the so-called resource curse and find that, despite the topic’s popularity in economics and political science research, this apparent paradox is a red herring. The most commonly used measure of ‘resource abundance’ can be more usefully interpreted as a proxy for ‘resource dependence’—endogenous to underlying institutional factors. In multiple estimations that combine resource abundance and dependence, institutional and constitutional variables, we find that (i) resource abundance, constitutions and institutions determine resource dependence, (ii) resource dependence does not affect growth, and (iii) resource abundance positively affects growth and institutional quality Show more
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Journal / seriesEconomics working paper series
SubjectNatural resource curse; economic growth; growth regressions; political regimes; institutions; constitutions
Organisational unit03635 - Bretschger, Lucas
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