This study proposes a new mechanism for the resource curse: crowding-out of innovation due to the existence of an option to engage in conflict. Using a game theoretical framework, it is argued that an increase in the amount of natural resources (in the informal sector here conflict for a...

This study proposes a new mechanism for the resource curse: crowding-out of innovation due to the existence of an option to engage in conflict. Using a game theoretical framework, it is argued that an increase in the amount of natural resources (in the informal sector here conflict for a...

The global boom in hydrocarbon, metal and mineral prices since the year 2000 created huge economic rents - rents which, once invested, were widely expected to promote productivity growth in other parts of the booming economies, creating a lasting legacy of the boom years. This paper asks whether...

The resource curse hypothesis relies on the resource-rich countries tendency to grow slower than resource-poor countries. Focusing on forest issues, this paper extends the resource curse hypothesis to environmental degradation: how do forest endowment and forest harvesting affect deforestation?...

This study examines indicators of human capital accumulation together with data for natural resource abundance and rents in a panel of 102 countries running from 1970 to 1999. Mineral wealth makes a positive and marked difference on human capital accumulation. Matching on observables reveals...

We examine empirically the direct and indirect effects of natural resource abundance on economic growth. Natural resources have a negative impact on growth if considered in isolation, but a positive direct impact on growth if other explanatory variables, such as corruption, investment, openness,...

Since the “Dutch disease”, more studies are establishing a negative relationship between natural resource abundance and a nation’s economic performance that have termed a ‘resource curse’. Nigeria being of such countries with abundant natural resources this study sought to examine the...

Macro cross-country data and micro US county data indicate that resource-rich regions have small but relatively productive manufacturing sectors and large but relatively unproductive non-manufacturing sectors. We suggest a process of specialization to explain these facts. Windfall revenue...

Do reduced costs of factor mobility mitigate Dutch Disease effects, to the extent that they are reversed? The case of federations provides an indication they do. We observe Resource Blessing effects at the federal-state level (within federations) yet rather Resource Curse ones at the federal...

Do reduced costs of factor mobility mitigate ‘Dutch Disease’ symptoms? The case of federations provides an indication for this. By investigating ‘Resource Curse’ effects in all federations for which complete data is available at the regional level it is observed that within federations...