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Resource curse: new evidence on the role of institutions


Sarmidi, Tamat and Law, Siong Hook and Jafari, Yaghoob (2014) Resource curse: new evidence on the role of institutions. International Economic Journal, 28 (1). pp. 191-206. ISSN 1016-8737; ESSN: 1743-517X


This paper attempts to provide a probable answer to a longstanding resource curse puzzle; i.e., why resource-rich nations grow at a slower rate compared to less fortunate ones. Using an innovative threshold estimation technique, the empirical results reveal that there is a threshold effect in the natural resources – economic growth relationship. We find that the impact of natural resources is meaningful to economic growth only after a certain threshold point of institutional quality has been attained. The results also shed light on the fact that the nations that have low institutional quality depend heavily on natural resources while countries with high quality institutions are relatively less dependent on natural resources to generate growth.

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Additional Metadata

Item Type: Article
Divisions: Faculty of Economics and Management
DOI Number: https://doi.org/10.1080/10168737.2013.787110
Publisher: Taylor & Francis
Keywords: Economic development; Natural resource curse; Institutions
Depositing User: Nurul Ainie Mokhtar
Date Deposited: 31 Dec 2015 03:11
Last Modified: 10 Oct 2016 01:28
Altmetrics: http://www.altmetric.com/details.php?domain=psasir.upm.edu.my&doi=10.1080/10168737.2013.787110
URI: http://psasir.upm.edu.my/id/eprint/35237
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