Kiel Working Papers, Kiel Institute for World Economics
No 1218:
Bananas, Oil, and Development: Examining the Resource Curse and Its Transmission Channels by Resource Type
Jann Lay and Toman Omar Mahmoud
Abstract: This paper examines the resource curse and its
transmission channels by resource type. We review and synthesize existing
theories of the transmission channels of the curse. This synthesis suggests
that (1) relating the transmission channels to the characteristics of
different types of resources, and (2) considering how other country
characteristics, such as institutional quality and policy outcomes, affect
the impact of natural resource wealth on development, would improve our
understanding of the functioning of the curse. We then assess these two
aspects empirically and find different transmission channels to be relevant
for different types of resources. Furthermore, we illustrate the
interaction between other country characteristics and the curse.
Keywords: O11, O13, C21; (follow links to similar papers)
JEL-Codes: O11,; O13,; C21; (follow links to similar papers)
41 pages, August 2004
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