Natural resources, demand for external finance and financial development

Arbeitspapier

The paper contributes to the ongoing debate on the natural resource curse, which postulates a negative link between natural resource abundance and economic growth. It shows empirically that resource-rich countries appear to have a less developed financial system and investigates a potential mechanism behind this connection by applying insights from the finance and trade literature. It tests whether the resource sectors' lower demand for short-term external credit negatively affects financial development. This is done with cross-sectional and panel analysis, using an instrument for credit demand based on exogenous geographic determinants. The results, however, suggest that poor economic diversity rather than firms' credit demand drives the detrimental effect of resources on finance.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Diskussionsbeiträge ; No. 2014/33

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Trade: General ; General Financial Markets: General (includes Measurement and Data) ; Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products ; Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
• Thema: financial development ; external dependence ; natural resource curse ; international trade ; gravity model

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Hattendorff, Christian
• Ereignis: Veröffentlichung
• (wer): Freie Universität Berlin, Fachbereich Wirtschaftswissenschaft
• (wo): Berlin
• (wann): 2014

Weitere Informationen

• Handle: http://hdl.handle.net/10419/104547
• Letzte Aktualisierung: 10.03.2025, 11:45 MEZ