Premium
Natural Resource Dependence and Economic Performance in the 1970–2000 Period
Author(s) -
Mavrotas George,
Murshed Syed Mansoob,
Torres Sebastian
Publication year - 2011
Publication title -
review of development economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.531
H-Index - 50
eISSN - 1467-9361
pISSN - 1363-6669
DOI - 10.1111/j.1467-9361.2010.00597.x
Subject(s) - natural resource , economics , resource curse , revenue , resource (disambiguation) , natural resource economics , dutch disease , exploitation of natural resources , panel data , agriculture , corporate governance , macroeconomics , monetary economics , econometrics , ecology , computer network , accounting , finance , computer science , exchange rate , biology
We look at the type of natural resource dependence and growth in developing countries. Certain natural resources called point‐source, such as oil and minerals, exhibit concentrated and capturable revenue patterns, while revenue flows from resources such as agriculture are more diffused. Developing countries that export the former type of products are regarded prone to growth failure due to institutional failure. We present an explicit model of growth collapse with micro‐foundations in rent‐seeking contests with increasing returns. Our econometric analysis is among the few in this literature with a panel data dimension. Point‐source‐type natural resource dependence does retard institutional development in both governance and democracy, which hampers growth. The resource curse, however, is more general and not simply confined to mineral exporters.