Aragona, Fernando M.Chuhan-Pole, PunamLand, Bryan Christopher2015-06-022015-06-022015-05https://hdl.handle.net/10986/21995What are the socioeconomic impacts of resource abundance? Are these effects different at the national and local levels? How could resource booms benefit (or harm) local communities? This paper reviews a vast literature examining these questions, with an emphasis on empirical works. First, the evidence and theoretical arguments behind the so-called resource curse, and other impacts at the country level, are reviewed. This cross-country literature highlights the importance of institutions. Then, a simple analytical framework is developed to understand how resource booms could impact local communities, and the available empirical evidence is examined. This emerging literature exploits within-country variation and is opening new ways to think about the relation between natural resources and economic development. The main message is that others factors, such as market mechanisms and local spillovers, are also relevant for understanding the impact of resource abundance. Finally, the paper discusses issues related to fiscal decentralization and provides ideas for future research.en-USCC BY 3.0 IGOMONETARY POLICYENVIRONMENTAL QUALITYINTERGENERATIONAL EQUITYECONOMIC GROWTHTECHNOLOGICAL PROGRESSPRODUCTIONENVIRONMENTAL PROTECTIONMULTIPLIERSAIR QUALITYPERVERSE INCENTIVESCARBONINCOMEECONOMIC WELFAREAGRICULTURAL PRODUCTIONNITROGEN OXIDESPRODUCERSPROPERTY RIGHTSHEAVY METALSMACROECONOMIC POLICYLABOR FORCELIQUIDITYEXPORTSEMISSIONSPOLITICAL ECONOMYREVENUESWELFAREENVIRONMENTAL REGULATIONSECONOMIC EFFECTSINCENTIVESEQUILIBRIUMVARIABLESTAX SYSTEMSMODELSEMPIRICAL STUDIESREAL INCOMEINPUTSREAL WAGESRETURNS TO SCALEWEALTHINPUT PRICESAGRICULTURAL OUTPUTDEVELOPED COUNTRIESSOCIOECONOMIC IMPACTSINCREASING RETURNS TO SCALEEMPIRICAL ANALYSISECONOMIC ACTIVITYDEVELOPMENTOIL PRICESCOSTSVOTERSOILAIR POLLUTIONCROWDING OUTDEVELOPMENT ECONOMICSWELFARE EFFECTSPOPULATION GROWTHCORPORATE INCOME TAXESRENTCAPITAL FORMATIONFIXED COSTSEXCHANGE RATESPRODUCTIVITYOPTIONSLABOR PRODUCTIVITYEXTERNALITIESINDUSTRIALIZATIONINCREASING RETURNSDEMOCRATIC INSTITUTIONSMARKET MECHANISMDEBTMARKETSPOLLUTIONECONOMIC POLICIESENVIRONMENTAL ECONOMICSNATURAL RESOURCESGROSS DOMESTIC PRODUCTMETALSEFFICIENCYFISHINGFOOD PRODUCTIONTAXESCANCERLAND USERESOURCESUNEMPLOYMENTEQUITYPRODUCTIVITY GROWTHHUMAN CAPITALOPPORTUNITY COSTECONOMIC IMPACTECONOMIC PERFORMANCECAPITALWAGESCOMPLIANCE COSTSVALUEPOLICY MAKERSAIR POLLUTION CONTROLENVIRONMENTAL IMPACTSPURCHASING POWERCOMPARATIVE ADVANTAGESDEMANDMINESAGGREGATE DEMANDPUBLIC EXPENDITURESECONOMYENVIRONMENTSEXPENDITURESPROPERTYCORPORATE TAXESGROWTH MODELSMEASUREMENTENVIRONMENTSOIL DEGRADATIONECONOMICSECONOMIC MODELSTERMS OF TRADETAX REVENUESIDE EFFECTSECONOMIC DEVELOPMENTTRADEGDPGOODSLANDECONOMIES OF SCALEINVESTMENTCOMPARATIVE ADVANTAGEPOSITIVE EXTERNALITIESCOALWATER POLLUTIONDECENTRALIZATIONREVENUEPOLLUTION CONTROLOVERVALUATIONEMPIRICAL EVIDENCELIVING CONDITIONSECONOMISTSPRICE INDEXESPROFITSENVIRONMENTALACID RAINLABOR MARKETSOUTCOMESOPEN ECONOMIESPUBLIC GOODPRICESNEGATIVE EXTERNALITIESBENEFITSECONOMIESDEVELOPMENT POLICYPUBLIC GOODSFUTURE RESEARCHWorking PaperWorld Bank10.1596/1813-9450-7263