Arbeitspapier

Natural resources, demand for external finance and financial development

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.

Sprache
Englisch

Erschienen in
Series: Diskussionsbeiträge ; No. 2014/33

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

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

Handle
Letzte Aktualisierung
10.03.2025, 11:45 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Hattendorff, Christian
  • Freie Universität Berlin, Fachbereich Wirtschaftswissenschaft

Entstanden

  • 2014

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