This paper theoretically and empirically investigates the effect of natural resource rents on the process of economic liberalization and a potential moderating effect of the level of democracy. A simple political-economic model is developed in which the government in an autocratic country faces...

This paper and associated presentation explores the economic phenomenon of the so called ‘resource curse’. We begin by defining the phrase and outlining the main individual ‘curses’ and their causes to give the reader a broad understanding of what is meant by the phrase. This is followed...

Natural resource abundance is a blessing for some countries, but a curse for others. We show that differences across countries in the degree of fiscal decentralization can contribute to this divergent outcome. Using a large panel of countries, covering several decades and various fiscal...

This paper theoretically and empirically investigates the effect of natural resource rents on the process of economic liberalization and a potential moderating effect of the level of democracy. A simple political-economic model is developed in which the government in an autocratic country faces...

Empirical evidence has suggested a “resource curse” exists, in which countries with abundant resources may have higher initial consumption but then grow more slowly. The effect appears to be dependent on a country's political structure. Theoretical models not typically accounted for...

Development economists have found evidence that an abundance in natural resources hinders economic growth, contrary to conventional expectations. This finding is called the resource curse hypothesis. The major questions this paper addresses are: does the resource curse hypothesis apply to...

We examine the impact of resource windfall on the standard of living both in the short-run and long-run, using a sample of 130 countries, 1963-2007. Then, we systematically investigate the effect of resource windfall on welfare in three different groups of countries: We find that in the...

The curse of natural resources detected in numerous cross-country growth regressions isquestioned. Although natural resource dependence is associated with slow economic growth, there is no evidence that natural resource abundance per se is negatively related to growth. Thus, the supposed link...

The curse of natural resources detected in numerous cross-country growth regressions is questioned. Although natural resource dependence is associated with slow economic growth, there is no evidence that natural resource abundance per se is negatively related to growth. Thus, the supposed link...