A Mixed Blessing

Gylfason, Þorvaldur; Herbertsson, Tryggvi Þór; Zoëga, Gylfi

doi:10.1017/s1365100599011049

Cited by 474 publications

(104 citation statements)

References 14 publications

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“…In line with Gylfason et al (1999), Sala-i-Martin and Subramanian (2003), and Boschini et al (2007), we also test our results by controlling for regional fixed effects. Mehlum et al (2006) for example state that a potential concern is that "the resource curse mechanism might be purely an African phenomenon".…”

Section: Additional Control Variablesmentioning

confidence: 64%

“…Their results have been replicated by Davis (2013) and refined by numerous other authors, such as Gylfason et al (1999), who emphasizes the likelihood of reduced investment in human capital. Auty (2001) finds that the per capita incomes of resource-poor countries grew between two to three times faster compared to their resourcerich counterparts.…”

Section: The Concept Of the Resource Cursementioning

confidence: 75%

“…Carmignani and Avom (2010) find that resource dependence has adverse effects on social development. The link between natural resources and inequality has been established by Gylfason and Zoega (2002), Fum and Hodler (2010), Goderis and Malone (2011) and Carmignani (2013). Gylfason (1999 demonstrates that school enrolment tends to be inversely related to resource abundance.…”

Section: The Concept Of the Resource Cursementioning

confidence: 98%

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Extending the concept of the resource curse: Natural resources and public spending on health

Cockx

Francken

2014

Ecological Economics

119

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This paper extends the concept of the resource curse by studying whether and through which transmission channels natural resource wealth affects social spending. Even though the availability of vast natural capital reserves has commonly been linked to the neglect of human development, most of the literature has continued to focus on economic performance. This paper is the first to empirically investigate the link between natural resource wealth and public health expenditures in light of the hypothesis that resource wealth as a source of unearned state income enhances state autonomy and increases volatility, which leads to policies that fail to prioritize human development. Using a large panel dataset of world countries covering the period from 1995 to 2009, we find a robust, significant inverse relationship between natural resource dependence, and even abundance, and public health spending over time. The effect remains significant after controlling for state autonomy, volatility, and other factors.These findings have implications for national authorities as well as the extractive industry. Governments should be made accountable for natural resource wealth and correct taxation could provide additional resources, earmarked for health. The extractive industry could increase their investments in sustainable Corporate Social Responsibility operations, specifically in the health sector.

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Section: Additional Control Variablesmentioning

confidence: 64%

Section: The Concept Of the Resource Cursementioning

confidence: 75%

Section: The Concept Of the Resource Cursementioning

confidence: 98%

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Extending the concept of the resource curse: Natural resources and public spending on health

Cockx

Francken

2014

Ecological Economics

119

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“…One commonly cited culprit is the socalled "Dutch disease" (a term coined in 1977 after the natural gas boom in the Netherlands), whereby resource exports increase exchange rates, reducing the competitiveness of exporters in the manufacturing sector (Sachs & Warner 1995, Gylfason, et al 1999, Sala-i-Martin & Subramanian 2003. Others have explored the link between natural resources and quality of institutions.…”

Section: Introductionmentioning

confidence: 99%

The resource curse exorcised: Evidence from a panel of countries

Smith¹

2015

Journal of Development Economics

226

107

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. This paper evaluates the impact of major natural resource discoveries since 1950 on GDP per capita and other economic and social indicators. Using panel fixed-effects estimation ad resource discoveries in countries that were not previously resource-rich, I find a positive effect on GDP per capita following extraction that persists in the long term, in contrast with much of the resource curse literature that uses cross-sectional designs. I also find positive effects on education levels, reductions in infant mortality, and negative effects on democratic institutions. I further test these outcomes with synthetic control analysis, yielding results consistent the fixed-effects model. and resource discoveries in countries that were not previously resource-rich, I find a positive effect on GDP per capita following extraction that persists in the long term, in contrast with much of the resource curse literature that uses cross-sectional designs. I also find positive effects on education levels, reductions in infant mortality, and negative effects on democratic institutions. I further test these outcomes with synthetic control analysis, yielding results consistent the fixed-effects model. Terms of use: Documents in

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“…The resource curse hypothesis has been put into a number of empirical studies, and the majority of them has provided supportive evidence (e.g., Sachs and Warner, 1995;Gelb, 1988;Gylfason et al, 1999;Manzano & Rigobon, 2008). In line with the evidence above, Sachs and Warner (2001) argued that the empirical support for the resource curse is quite strong, by showing that there is little direct evidence that omitted geographical or climate variables explain the curse, or that there is a bias resulting from some other unobserved growth deterrent.…”

Section: Resource Curse Hypothesismentioning

confidence: 95%

The Resource Curse Hypothesis in Lao Economy

Khinsamone

2017

JAD

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The purpose of this paper is to investigate the adaptability of the resource curse hypothesis for Lao economy. The study verifies the two crowding-out logics that resource abundance would crowd out manufacturing activities and/or savings and investment, by examining their causalities and impulse responses in a vector auto-regression (VAR) model estimation. The estimation outcomes implied the existence of the resource curse in Lao economy: resource production has crowded out manufacturing activities through real exchange rate appreciation, thereby causing the Dutch Disease; and resource production has not contributed significantly to capital accumulation, thereby being not consistent with Hartwick-rule. The study contributed to the literature by verifying two kinds of crowding-out logics on the resource curse by applying a VAR model: the crowding-out of manufacturing activities as a sectoral allocation, and the crowding-out of savings and investment as an intertemporal allocation. The study might also be valuable to the policy makers, since it proposed a strategy for transforming Lao economic structure from "resource curse" to "resource blessing" by setting up some institutional framework to allocate resource revenues to infrastructure development.

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A Mixed Blessing

Cited by 474 publications

References 14 publications

Extending the concept of the resource curse: Natural resources and public spending on health

Extending the concept of the resource curse: Natural resources and public spending on health

The resource curse exorcised: Evidence from a panel of countries

The Resource Curse Hypothesis in Lao Economy

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