Isham, JonathanWoolcock, MichaelPritchett, LantBusby, Gwen2014-01-032014-01-032005-09-28World Bank Economic Reviewdoi:10.1093/wber/lhi010https://hdl.handle.net/10986/16480Many oil, mineral, and plantation crop-based economies experienced a substantial deceleration in growth following the commodity boom and bust of the 1970s and early 1980s. This article illustrates how countries dependent on point source natural resources (those extracted from a narrow geographic or economic base, such as oil and minerals) and plantation crops are predisposed to heightened economic and social divisions and weakened institutional capacity. This in turn impedes their ability to respond effectively to shocks, which previous studies have shown to be essential for sustaining rising levels of prosperity. Analysis of data on classifications of export structure, controlling for a wide array of other potential determinants of governance, shows that point source and coffee and cocoa exporting countries do relatively poorly across an array of governance indicators. These governance effects are not associated simply with being a natural resource exporter. Countries with natural resource exports that are diffuse relying primarily on livestock and agricultural produce from small family farms do not show the same strong effects and have had more robust growth recoveries.en-USCC BY-NC-ND 3.0 IGOACCOUNTABILITYAGGREGATING GOVERNANCE INDICATORSAGRICULTURAL PRODUCTIONAGRICULTUREANIMALSBANANASBUREAUCRACYCAPITAL INTENSITYCDCITIZENCITIZENSCIVIL LIBERTIESCIVIL SOCIETYCIVIL WARCLIENT COUNTRIESCOCOACOERCIONCOFFEECOLLECTIVE ACTIONCOMMODITIESCOMMODITYCOMPARATIVE ADVANTAGECOMPARATIVE ECONOMICSCORNCORRUPTIONCOTTONCOUNTRY RISKCROPCROPSDEBTDEMOCRACYDEMOCRATIC REFORMSDETERMINANTS OF GOVERNANCEDETERMINANTS OF GROWTHDEVELOPING ECONOMIESDEVELOPMENT ASSISTANCEDEVELOPMENT ECONOMICSDISEASE VECTORSECONOMETRICSECONOMIC CONDITIONSECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC HISTORIANSECONOMIC HISTORYECONOMIC PERFORMANCEECONOMIC PROGRAMSECONOMIC RESEARCHECONOMIC STRUCTUREECONOMICS RESEARCHEXPORT CROPSEXPORTSEXPOSUREFACTOR ENDOWMENTSFARMSFASCISMFERTILIZERFERTILIZERSFOREIGN AIDGDPGDP PER CAPITAGEOLOGYGNPGNP PER CAPITAGOOD GOVERNANCEGOVERNANCE INDICATORSGOVERNANCE INSTITUTIONSGOVERNMENT CAPACITYGOVERNMENT EFFECTIVENESSGROWTH PERFORMANCEGROWTH RATEGROWTH RATESGROWTH REGRESSIONINCOMEINCOME DISTRIBUTIONINCOME INEQUALITYINDUSTRIALIZATIONINEQUALITYINFRASTRUCTURE PROJECTSINNOVATIONINSTITUTIONAL CAPACITYINSTITUTIONAL MEASURESINSTITUTIONAL PERFORMANCEINSTITUTIONAL QUALITYINSTITUTIONAL REFORMINSTITUTIONAL VARIABLESINTERNATIONAL TRADELEVEL OF DEVELOPMENTLOW-INCOME COUNTRYMACROECONOMIC VARIABLESMEASUREMENT ERRORMEATMINORITYMODERNIZATIONMONETARY ECONOMICSMORTALITYMOTHERNATURAL ENDOWMENTSNATURAL RESOURCENATURAL RESOURCESNET EXPORTSOILSEEDSOLIGARCHYOPEN ECONOMYOUTPUTPLANTATIONSPOLICY RESEARCHPOLICY RESEARCH WORKING PAPERPOLITICAL CHANGEPOLITICAL CONDITIONSPOLITICAL ECONOMYPOLITICAL INFLUENCEPOLITICAL INSTABILITYPOLITICAL INSTITUTIONSPOLITICAL LEGITIMACYPOLITICAL POWERPOLITICAL RIGHTSPOLITICAL STABILITYPOLITICAL STRUCTURESPOOR GOVERNANCEPOOR PERFORMANCEPOPULATION GROWTHPRIME MINISTERPRODUCEPROPERTY RIGHTSPUBLIC INSTITUTIONSPUBLIC POLICYPURCHASING POWERPURCHASING POWER PARITYREGULATORY BURDENREGULATORY FRAMEWORKREMITTANCESRESPECTRICERULE OF LAWRURAL PRODUCERSECONDARY SCHOOLSMALLHOLDERSSOCIAL COHESIONSOCIAL CONFLICTSOCIAL DEVELOPMENTSOCIAL DIMENSIONSSOCIAL INSTITUTIONSSOCIAL STRUCTURESPICESSTATE UNIVERSITYSUGARTAXTAXATIONTEATECHNICAL SKILLSTHIRD WORLDTOBACCOTRANSPARENCYTREE CROPSURBAN DWELLERSURBANIZATIONUSE OF RESOURCESVEGETABLE OILSVEGETABLESVESTED INTERESTSVOLATILITYWARSWEALTHWHEATWORKFORCEWORLD DEVELOPMENT INDICATORSWORLD ECONOMIESWORLD TRADEYIELDSJournal ArticleWorld Bank10.1596/16480