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

Show simple item record

collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
De Rosa, Donato
dc.contributor.author
Iootty, Mariana
dc.date.accessioned
2012-12-21T19:00:03Z
dc.date.available
2012-12-21T19:00:03Z
dc.date.issued
2012-07
dc.date.lastModified
2021-04-23T14:02:58Z
dc.description.abstract
This 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.identifier
http://documents.worldbank.org/curated/en/2012/07/16558571/natural-resources-cursed-investigation-dynamic-effects-resource-dependence-institutional-quality
dc.identifier.uri
http://hdl.handle.net/10986/11992
dc.language
English
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research working paper ; no. WPS 6151
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo/
dc.subject
ACCOUNTABILITY
dc.subject
ADVANCED ECONOMIES
dc.subject
AGGREGATE GOVERNANCE INDICATORS
dc.subject
AGGREGATE INDICATORS
dc.subject
ALLOCATIVE EFFICIENCY
dc.subject
ANTICORRUPTION
dc.subject
ASYMMETRIC INFORMATION
dc.subject
AUCTION
dc.subject
AVERAGE RESPONSES
dc.subject
BENCHMARK
dc.subject
BOND
dc.subject
BUSINESS DEVELOPMENT
dc.subject
BUSINESS ENVIRONMENT
dc.subject
BUSINESS PRACTICES
dc.subject
BUSINESS SECTOR
dc.subject
BUSINESS SECTOR DEVELOPMENT
dc.subject
CAPITAL INFLOWS
dc.subject
CAUSAL EFFECT
dc.subject
CITIZENS
dc.subject
CIVIL SOCIETY
dc.subject
COAL
dc.subject
COLLECTIVE ACTION
dc.subject
COMMERCIAL RISK RATING AGENCIES
dc.subject
COMMODITIES
dc.subject
COMPARATIVE ECONOMICS
dc.subject
COMPETITION POLICIES
dc.subject
COMPETITIVENESS
dc.subject
CONTRACT ENFORCEMENT
dc.subject
CORRUPTION
dc.subject
CORRUPTION INDICATOR
dc.subject
CORRUPTION LEVELS
dc.subject
COUNTRY CHARACTERISTICS
dc.subject
COUNTRY DUMMIES
dc.subject
COUNTRY DUMMY
dc.subject
COUNTRY FIXED EFFECTS
dc.subject
COUNTRY REPORTS
dc.subject
COUNTRY SPECIFIC VARIABLES
dc.subject
CRIME
dc.subject
DECENTRALIZATION
dc.subject
DEMOCRACY
dc.subject
DEVELOPED COUNTRIES
dc.subject
DEVELOPING COUNTRIES
dc.subject
DEVELOPING ECONOMIES
dc.subject
DEVELOPMENT ECONOMICS
dc.subject
DEVELOPMENT PATHS
dc.subject
DEVELOPMENT POLICY
dc.subject
DIRECT INVESTMENT
dc.subject
DOLLAR VALUE
dc.subject
DOMAIN
dc.subject
DOMESTIC COMPETITION
dc.subject
DOMESTIC MARKET
dc.subject
ECONOMETRICS
dc.subject
ECONOMIC CONDITIONS
dc.subject
ECONOMIC CONSEQUENCES
dc.subject
ECONOMIC CRISIS
dc.subject
ECONOMIC DEVELOPMENT
dc.subject
ECONOMIC FACTORS
dc.subject
ECONOMIC GROWTH
dc.subject
ECONOMIC OUTCOMES
dc.subject
ECONOMIC PERFORMANCE
dc.subject
ECONOMIC RESEARCH
dc.subject
ECONOMIC STRUCTURE
dc.subject
ECONOMIC THEORY
dc.subject
ECONOMICS
dc.subject
ELASTICITIES
dc.subject
ELASTICITY
dc.subject
EMPIRICAL EVIDENCE
dc.subject
EMPIRICAL STUDIES
dc.subject
ENVIRONMENTAL
dc.subject
ENVIRONMENTAL ECONOMICS
dc.subject
EXCHANGE RATE
dc.subject
EXPORT MARKETS
dc.subject
EXPORTS
dc.subject
EXPOSURE
dc.subject
FACTORS OF PRODUCTION
dc.subject
FINANCIAL SECTORS
dc.subject
FOREIGN CAPITAL
dc.subject
FOREIGN DIRECT INVESTMENT
dc.subject
FREE PRESS
dc.subject
GDP
dc.subject
GDP PER CAPITA
dc.subject
GLOBAL COMPETITIVENESS
dc.subject
GOVERNANCE INDICATORS
dc.subject
GOVERNMENT EFFECTIVENESS
dc.subject
GOVERNMENT EXPENDITURE
dc.subject
GROWTH PERFORMANCE
dc.subject
GROWTH POLICY
dc.subject
GROWTH POTENTIAL
dc.subject
GROWTH RATES
dc.subject
GROWTH THEORIES
dc.subject
HUMAN CAPITAL
dc.subject
HUMAN RESOURCES
dc.subject
INCOME
dc.subject
INCOME DISTRIBUTION
dc.subject
INCOME LEVELS
dc.subject
INCOMES
dc.subject
INDUSTRIAL PRODUCTION
dc.subject
INEQUALITY
dc.subject
INNOVATION
dc.subject
INNOVATION POLICY
dc.subject
INSTITUTIONAL ARRANGEMENTS
dc.subject
INSTITUTIONAL ENVIRONMENT
dc.subject
INSTITUTIONAL FRAMEWORK
dc.subject
INSTITUTIONAL MEASURES
dc.subject
INSTITUTIONAL QUALITY
dc.subject
INTERNATIONAL COMPARISON
dc.subject
INTERNATIONAL COMPETITIVENESS
dc.subject
JUDICIAL SYSTEM
dc.subject
JURISDICTION
dc.subject
LAW INDEX
dc.subject
LEGAL ORIGIN
dc.subject
LEGAL ORIGINS
dc.subject
LEGAL SYSTEM
dc.subject
LIVING STANDARDS
dc.subject
MACROECONOMIC MANAGEMENT
dc.subject
MANUFACTURING
dc.subject
MARKET COMPETITION
dc.subject
MARKET ECONOMY
dc.subject
MARKET REGULATION
dc.subject
MEASURING GOVERNANCE
dc.subject
METALS
dc.subject
MONETARY ECONOMICS
dc.subject
MONOPOLIES
dc.subject
NATURAL RESOURCE
dc.subject
NATURAL RESOURCES
dc.subject
NEGATIVE EXTERNALITIES
dc.subject
NEW TECHNOLOGIES
dc.subject
OIL
dc.subject
OIL PRICES
dc.subject
OIL SECTOR
dc.subject
OPEN ACCESS
dc.subject
OPERATING ENVIRONMENT
dc.subject
OUTPUT
dc.subject
PER CAPITA INCOME
dc.subject
POLICY FORMULATION
dc.subject
POLICY MAKERS
dc.subject
POLITICAL ACCOUNTABILITY
dc.subject
POLITICAL ECONOMY
dc.subject
POLITICAL INFLUENCE
dc.subject
POLITICAL INSTABILITY
dc.subject
POLITICAL POWER
dc.subject
POLITICAL STABILITY
dc.subject
POSITIVE EFFECTS
dc.subject
POSITIVE EXTERNALITIES
dc.subject
PRIVATE SECTOR
dc.subject
PRIVATE SECTOR DEVELOPMENT
dc.subject
PRODUCTION PROCESS
dc.subject
PRODUCTIVITY
dc.subject
PRODUCTIVITY GROWTH
dc.subject
PROPERTY RIGHTS
dc.subject
PUBLIC POLICIES
dc.subject
PUBLIC POLICY
dc.subject
RAPID ECONOMIC GROWTH
dc.subject
REGRESSION ANALYSIS
dc.subject
REGULATORS
dc.subject
REGULATORY CAPTURE
dc.subject
REGULATORY ENVIRONMENT
dc.subject
REGULATORY FRAMEWORK
dc.subject
REGULATORY OUTCOMES
dc.subject
REGULATORY QUALITY
dc.subject
REGULATORY REGIME
dc.subject
REGULATORY_CAPTURE
dc.subject
RENT SEEKING
dc.subject
RESOURCE ALLOCATION
dc.subject
RESOURCE MANAGEMENT
dc.subject
RESULT
dc.subject
RESULTS
dc.subject
REVERSE CAUSALITY
dc.subject
RULE OF LAW
dc.subject
SHAREHOLDERS
dc.subject
SMALL BUSINESS
dc.subject
SMALL BUSINESSES
dc.subject
SOCIAL INTERACTIONS
dc.subject
STAGFLATION
dc.subject
STATE CAPTURE
dc.subject
STATISTICAL DATA
dc.subject
TAX
dc.subject
TAX BREAKS
dc.subject
TAXATION
dc.subject
TERMS OF TRADE
dc.subject
TERRORISM
dc.subject
THEORETICAL MODELS
dc.subject
TRADE POLICY
dc.subject
TRANSITION ECONOMIES
dc.subject
TRANSMISSION
dc.subject
TRANSPARENCY
dc.subject
UNOBSERVED COMPONENTS MODEL
dc.subject
VESTED INTERESTS
dc.subject
VOLATILITY
dc.subject
WEALTH
dc.subject
WEB
dc.subject
WORLD DEVELOPMENT INDICATORS
dc.subject
WORLD TRADE
dc.subject
WORLD TRADE ORGANIZATION
dc.subject
WORLDWIDE GOVERNANCE INDICATORS
dc.title
Are Natural Resources Cursed? An Investigation of the Dynamic Effects of Resource Dependence on Institutional Quality
en
okr.date.disclosure
2012-07-01
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.doctype
Publications & Research
okr.docurl
http://documents.worldbank.org/curated/en/2012/07/16558571/natural-resources-cursed-investigation-dynamic-effects-resource-dependence-institutional-quality
okr.globalpractice
Macroeconomics and Fiscal Management
okr.globalpractice
Environment and Natural Resources
okr.globalpractice
Governance
okr.globalpractice
Transport and ICT
okr.globalpractice
Trade and Competitiveness
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-6151
okr.identifier.externaldocumentum
000158349_20120731090512
okr.identifier.internaldocumentum
16558571
okr.identifier.report
WPS6151
okr.language.supported
en
okr.pdfurl
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2012/07/31/000158349_20120731090512/Rendered/PDF/WPS6151.pdf
en
okr.region.administrative
Europe and Central Asia
okr.region.country
Russian Federation
okr.region.country
Canada
okr.topic
Private Sector Development :: E-Business
okr.topic
Economic Theory and Research
okr.topic
Private Sector Development :: Emerging Markets
okr.topic
Environmental Economics and Policies
okr.topic
Governance :: Governance Indicators
okr.topic
Macroeconomics and Economic Growth
okr.topic
Environment
okr.unit
Development Research Group (DECRG)
okr.volume
1 of 1

Show simple item record



This item appears in the following Collection(s)