Resource curse or not: A question of appropriability

Arbeitspapier

This paper shows that whether natural resources are good or bad for a country's development depends crucially on the interaction between institutional setting and the type of resources that the country possesses. Some natural resources are for economical and technical reasons more likely to cause problems such as rent-seeking and conflicts than others (termed technically appropriable resources). This potential problem can, however, be countered by good institutional quality (rendering these resources less institutionally appropriable). In contrast to the traditional resource curse hypothesis we show that the impact of natural resources on economic growth is non-monotonic in institutional quality. Mineral rich countries are cursed only if they have low quality institutions, while the curse is reversed if institutions are good enough. Using new data we find that this is even more stark for countries rich in diamonds and precious metals.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: SSE/EFI Working Paper Series in Economics and Finance ; No. 534

Classification and Topics

• Classification: Wirtschaft ; Economic History: Agriculture, Natural Resources, Environment, and Extractive Industries: General, International, or Comparative ; Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products ; Economic Growth and Aggregate Productivity: General ; Comparative Studies of Countries ; Capitalist Systems: Political Economy
• Subject: natural resources ; appropriability ; property rights ; institutions ; economic growth ; development ; Natürliche Ressourcen ; Eigentumsrecht ; Wirtschaftswachstum ; Entwicklung ; Institutionalismus

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Boschini, Anne D. ; Pettersson, Jan ; Roine, Jesper
• Event: Veröffentlichung
• (who): Stockholm School of Economics, The Economic Research Institute (EFI)
• (where): Stockholm
• (when): 2003

Further information

• Handle: http://hdl.handle.net/10419/56356
• Last update: 10.03.2025, 11:43 AM CET