Did Botswana Escape from the Resource Curse?
33 Pages Posted: 21 Jun 2006
Date Written: June 2006
Abstract
Botswana is typical of the countries that are endowed with abundant natural resources. Although it is commonly accepted that resource-rich economies tend to fail in accelerating growth, Botswana has experienced the most remarkable economic performance in the region. Using the latest cross-country data, this study empirically readdresses the question of whether resource abundance can contribute to growth. It finds that governance determines the extent to which the growth effects of resource wealth can materialize. In developing countries in particular, the quality of regulation, such as the predictability of changes of regulations, and anticorruption policies, such as transparency and accountability in the public sector, are most important for effective natural resource management and growth.
Keywords: Natural resources, Economic development, Governance
JEL Classification: C31, O13, O21, Q32
Suggested Citation: Suggested Citation
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