Natural Resource Booms and Inequality: Theory and Evidence

Goderis, Benedikt; Malone, Samuel W.

doi:10.2139/ssrn.1473739

Cited by 52 publications

(71 citation statements)

References 46 publications

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“…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: 99%

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: The Concept Of the Resource Cursementioning

confidence: 99%

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

Cockx

Francken

2014

Ecological Economics

119

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“…National income rises by more than natural resource revenues (dY=H T d(QE)+C N dP > H T d(QE)). The natural gradually thereafter; uncertainty about future commodity export prices seems to increase long-run inequality (Goderis and Malone, 2010). resource bonanza thus increases welfare.…”

Section: Dutch Disease: Natural Resource Windfalls Cause De-industriamentioning

confidence: 99%

Natural Resources: Curse or Blessing?

Ploeg

2011

Journal of Economic Literature

1,403

177

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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. Abstract Are natural resources a "curse" or a "blessing"? The empirical evidence suggests either outcome is possible. The paper surveys a variety of hypotheses and supporting evidence for why some countries benefit and others lose from the presence of natural resources. These include that a resource bonanza induces appreciation of the real exchange rate, deindustrialization and bad growth prospects, and that these adverse effects are more severe in volatile countries with bad institutions and lack of rule of law, corruption, presidential democracies, and underdeveloped financial systems. Another hypothesis is that a resource boom reinforces rent grabbing and civil conflict especially if institutions are bad, induces corruption especially in non-democratic countries, and keeps in place bad policies. Finally, resource rich developing economies seem unable to successfully convert their depleting exhaustible resources into other productive assets. The survey also offers some welfare-based fiscal rules for harnessing resource windfalls in developed and developing economies. Terms of use: Documents inJEL-Code: C12, C13, E01, F43, K42, O41, Q30.

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“…For example, underexplored areas include the effects on inequality (Carmignani, 2013, Goderis and Malone, 2011, Fum and Hodler, 2010, education (Ebeke et al, 2015, Stijns, 2006, health and living standards (Edwards, 2016, Pineda and Rodriguez, 2010, Caselli and Michaels, 2013. This paper contributes to the literature by looking at a further underexplored issue: the effects of natural resource income on state capacity and, in particular, fiscal capacity.…”

Section: Introductionmentioning

confidence: 96%