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Are Natural Resources Cursed? An Investigation of the Dynamic Effects of Resource Dependence on Institutional Quality

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dc.contributor.authorDe Rosa, Donato
dc.contributor.authorIootty, Mariana
dc.date.accessioned2012-12-21T19:00:03Z
dc.date.available2012-12-21T19:00:03Z
dc.date.issued2012-07
dc.description.abstractThis paper examines whether natural resource dependence has a negative influence on various indicators of institutional quality when controlling for the potential effects of other geographic, economic and cultural initial conditions. Analysis of a panel of countries from 1996 to 2010 indicates that a high degree of resource dependence, measured as the share of mineral fuel exports in a country's total exports, is associated with worse government effectiveness, as well as with reduced levels of competition across the economy. Furthermore, estimation of long-run elasticities suggests that government effectiveness and the intensity of domestic competition decrease over time as the dependence on natural resources increases. An illustration of the Russian case shows that the negative effects accumulate in the long run, leading to a worse deterioration of government effectiveness in Russia than in Canada, a country with a comparable resource endowment but far better overall institutional quality. This result is corroborated by a significant negative correlation found between regional resource dependence and an indicator of regulatory capture in Russian regions, which indicates that the regulatory environment is more likely to be subverted in regions that are more dependent on extractive industries. Overall, the findings would be consistent with a situation in which a generally weak institutional environment would allow resource interests to wield the bidding power accruing from export revenues to subvert the content of laws and regulations, as well as their enforcement. The fact that this is associated with negative externalities for the rest of the economy, notably by undermining a level playing field across non-resource sectors, sheds light on a potential channel for the resource curse.en
dc.identifierhttp://documents.worldbank.org/curated/en/2012/07/16558571/natural-resources-cursed-investigation-dynamic-effects-resource-dependence-institutional-quality
dc.identifier.doi10.1596/1813-9450-6151
dc.identifier.urihttps://hdl.handle.net/10986/11992
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 6151
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTABILITY
dc.subjectADVANCED ECONOMIES
dc.subjectAGGREGATE GOVERNANCE INDICATORS
dc.subjectAGGREGATE INDICATORS
dc.subjectALLOCATIVE EFFICIENCY
dc.subjectANTICORRUPTION
dc.subjectASYMMETRIC INFORMATION
dc.subjectAUCTION
dc.subjectAVERAGE RESPONSES
dc.subjectBENCHMARK
dc.subjectBOND
dc.subjectBUSINESS DEVELOPMENT
dc.subjectBUSINESS ENVIRONMENT
dc.subjectBUSINESS PRACTICES
dc.subjectBUSINESS SECTOR
dc.subjectBUSINESS SECTOR DEVELOPMENT
dc.subjectCAPITAL INFLOWS
dc.subjectCAUSAL EFFECT
dc.subjectCITIZENS
dc.subjectCIVIL SOCIETY
dc.subjectCOAL
dc.subjectCOLLECTIVE ACTION
dc.subjectCOMMERCIAL RISK RATING AGENCIES
dc.subjectCOMMODITIES
dc.subjectCOMPARATIVE ECONOMICS
dc.subjectCOMPETITION POLICIES
dc.subjectCOMPETITIVENESS
dc.subjectCONTRACT ENFORCEMENT
dc.subjectCORRUPTION
dc.subjectCORRUPTION INDICATOR
dc.subjectCORRUPTION LEVELS
dc.subjectCOUNTRY CHARACTERISTICS
dc.subjectCOUNTRY DUMMIES
dc.subjectCOUNTRY DUMMY
dc.subjectCOUNTRY FIXED EFFECTS
dc.subjectCOUNTRY REPORTS
dc.subjectCOUNTRY SPECIFIC VARIABLES
dc.subjectCRIME
dc.subjectDECENTRALIZATION
dc.subjectDEMOCRACY
dc.subjectDEVELOPED COUNTRIES
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPING ECONOMIES
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDEVELOPMENT PATHS
dc.subjectDEVELOPMENT POLICY
dc.subjectDIRECT INVESTMENT
dc.subjectDOLLAR VALUE
dc.subjectDOMAIN
dc.subjectDOMESTIC COMPETITION
dc.subjectDOMESTIC MARKET
dc.subjectECONOMETRICS
dc.subjectECONOMIC CONDITIONS
dc.subjectECONOMIC CONSEQUENCES
dc.subjectECONOMIC CRISIS
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC FACTORS
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC OUTCOMES
dc.subjectECONOMIC PERFORMANCE
dc.subjectECONOMIC RESEARCH
dc.subjectECONOMIC STRUCTURE
dc.subjectECONOMIC THEORY
dc.subjectECONOMICS
dc.subjectELASTICITIES
dc.subjectELASTICITY
dc.subjectEMPIRICAL EVIDENCE
dc.subjectEMPIRICAL STUDIES
dc.subjectENVIRONMENTAL
dc.subjectENVIRONMENTAL ECONOMICS
dc.subjectEXCHANGE RATE
dc.subjectEXPORT MARKETS
dc.subjectEXPORTS
dc.subjectEXPOSURE
dc.subjectFACTORS OF PRODUCTION
dc.subjectFINANCIAL SECTORS
dc.subjectFOREIGN CAPITAL
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectFREE PRESS
dc.subjectGDP
dc.subjectGDP PER CAPITA
dc.subjectGLOBAL COMPETITIVENESS
dc.subjectGOVERNANCE INDICATORS
dc.subjectGOVERNMENT EFFECTIVENESS
dc.subjectGOVERNMENT EXPENDITURE
dc.subjectGROWTH PERFORMANCE
dc.subjectGROWTH POLICY
dc.subjectGROWTH POTENTIAL
dc.subjectGROWTH RATES
dc.subjectGROWTH THEORIES
dc.subjectHUMAN CAPITAL
dc.subjectHUMAN RESOURCES
dc.subjectINCOME
dc.subjectINCOME DISTRIBUTION
dc.subjectINCOME LEVELS
dc.subjectINCOMES
dc.subjectINDUSTRIAL PRODUCTION
dc.subjectINEQUALITY
dc.subjectINNOVATION
dc.subjectINNOVATION POLICY
dc.subjectINSTITUTIONAL ARRANGEMENTS
dc.subjectINSTITUTIONAL ENVIRONMENT
dc.subjectINSTITUTIONAL FRAMEWORK
dc.subjectINSTITUTIONAL MEASURES
dc.subjectINSTITUTIONAL QUALITY
dc.subjectINTERNATIONAL COMPARISON
dc.subjectINTERNATIONAL COMPETITIVENESS
dc.subjectJUDICIAL SYSTEM
dc.subjectJURISDICTION
dc.subjectLAW INDEX
dc.subjectLEGAL ORIGIN
dc.subjectLEGAL ORIGINS
dc.subjectLEGAL SYSTEM
dc.subjectLIVING STANDARDS
dc.subjectMACROECONOMIC MANAGEMENT
dc.subjectMANUFACTURING
dc.subjectMARKET COMPETITION
dc.subjectMARKET ECONOMY
dc.subjectMARKET REGULATION
dc.subjectMEASURING GOVERNANCE
dc.subjectMETALS
dc.subjectMONETARY ECONOMICS
dc.subjectMONOPOLIES
dc.subjectNATURAL RESOURCE
dc.subjectNATURAL RESOURCES
dc.subjectNEGATIVE EXTERNALITIES
dc.subjectNEW TECHNOLOGIES
dc.subjectOIL
dc.subjectOIL PRICES
dc.subjectOIL SECTOR
dc.subjectOPEN ACCESS
dc.subjectOPERATING ENVIRONMENT
dc.subjectOUTPUT
dc.subjectPER CAPITA INCOME
dc.subjectPOLICY FORMULATION
dc.subjectPOLICY MAKERS
dc.subjectPOLITICAL ACCOUNTABILITY
dc.subjectPOLITICAL ECONOMY
dc.subjectPOLITICAL INFLUENCE
dc.subjectPOLITICAL INSTABILITY
dc.subjectPOLITICAL POWER
dc.subjectPOLITICAL STABILITY
dc.subjectPOSITIVE EFFECTS
dc.subjectPOSITIVE EXTERNALITIES
dc.subjectPRIVATE SECTOR
dc.subjectPRIVATE SECTOR DEVELOPMENT
dc.subjectPRODUCTION PROCESS
dc.subjectPRODUCTIVITY
dc.subjectPRODUCTIVITY GROWTH
dc.subjectPROPERTY RIGHTS
dc.subjectPUBLIC POLICIES
dc.subjectPUBLIC POLICY
dc.subjectRAPID ECONOMIC GROWTH
dc.subjectREGRESSION ANALYSIS
dc.subjectREGULATORS
dc.subjectREGULATORY CAPTURE
dc.subjectREGULATORY ENVIRONMENT
dc.subjectREGULATORY FRAMEWORK
dc.subjectREGULATORY OUTCOMES
dc.subjectREGULATORY QUALITY
dc.subjectREGULATORY REGIME
dc.subjectREGULATORY_CAPTURE
dc.subjectRENT SEEKING
dc.subjectRESOURCE ALLOCATION
dc.subjectRESOURCE MANAGEMENT
dc.subjectRESULT
dc.subjectRESULTS
dc.subjectREVERSE CAUSALITY
dc.subjectRULE OF LAW
dc.subjectSHAREHOLDERS
dc.subjectSMALL BUSINESS
dc.subjectSMALL BUSINESSES
dc.subjectSOCIAL INTERACTIONS
dc.subjectSTAGFLATION
dc.subjectSTATE CAPTURE
dc.subjectSTATISTICAL DATA
dc.subjectTAX
dc.subjectTAX BREAKS
dc.subjectTAXATION
dc.subjectTERMS OF TRADE
dc.subjectTERRORISM
dc.subjectTHEORETICAL MODELS
dc.subjectTRADE POLICY
dc.subjectTRANSITION ECONOMIES
dc.subjectTRANSMISSION
dc.subjectTRANSPARENCY
dc.subjectUNOBSERVED COMPONENTS MODEL
dc.subjectVESTED INTERESTS
dc.subjectVOLATILITY
dc.subjectWEALTH
dc.subjectWEB
dc.subjectWORLD DEVELOPMENT INDICATORS
dc.subjectWORLD TRADE
dc.subjectWORLD TRADE ORGANIZATION
dc.subjectWORLDWIDE GOVERNANCE INDICATORS
dc.titleAre Natural Resources Cursed? An Investigation of the Dynamic Effects of Resource Dependence on Institutional Qualityen
dspace.entity.typePublication
okr.crossref.titleAre Natural Resources Cursed? An Investigation of the Dynamic Effects of Resource Dependence on Institutional Quality
okr.date.disclosure2012-07-01
okr.date.doiregistration2025-04-10T10:39:27.327289Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2012/07/16558571/natural-resources-cursed-investigation-dynamic-effects-resource-dependence-institutional-quality
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeEnvironment and Natural Resources
okr.globalpracticeGovernance
okr.globalpracticeTransport and ICT
okr.globalpracticeTrade and Competitiveness
okr.guid916151468015858511
okr.identifier.doi10.1596/1813-9450-6151
okr.identifier.externaldocumentum000158349_20120731090512
okr.identifier.internaldocumentum16558571
okr.identifier.reportWPS6151
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2012/07/31/000158349_20120731090512/Rendered/PDF/WPS6151.pdfen
okr.region.administrativeEurope and Central Asia
okr.region.countryRussian Federation
okr.region.countryCanada
okr.topicPrivate Sector Development::E-Business
okr.topicEconomic Theory and Research
okr.topicPrivate Sector Development::Emerging Markets
okr.topicEnvironmental Economics and Policies
okr.topicGovernance::Governance Indicators
okr.topicMacroeconomics and Economic Growth
okr.topicEnvironment
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublicationdf7e1e55-05d4-558a-a340-71941945e91d
relation.isAuthorOfPublication.latestForDiscoverydf7e1e55-05d4-558a-a340-71941945e91d
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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