The Natural Resource Curse and Economic Transition
36 Pages Posted: 10 Sep 2009 Last revised: 18 Sep 2009
Date Written: September 2, 2009
Using cross-country regressions, we examine the relationship between “point-source” resource abundance and economic growth, quality of institutions, investment in human and physical capital, and social welfare (life expectancy and infant mortality). Contrary to most literature, we find little evidence of natural resource curse outside of the economies in transition. In the economies in transition, there is some evidence that natural resource wealth is associated with higher infant mortality. This negative effect, however, exists only relative to other resource rich countries. Compared to other economies in transition, natural resource abundant transitional economies are not worse off with respect to our indicators.
Keywords: economic transition, resource curse, institutional quality
JEL Classification: P27, P28, O13, Q32
Suggested Citation: Suggested Citation