This paper examines the effect of natural resource dependence on growth in a cross-country setting during 1970 to 2010, first accounting for the effect of resource export dependence on institutional development. We employ several political and governance indicators, numerous econometric techniques on two separate panels, including one post-cold war. Our findings suggest there is a resource curse adversely effecting growth via institutional deterioration in the longer term (1970-2010), but recently (1995-2012) there is a reversal of this adverse effect on some institutions. Moreover, certain institutions matter more for growth, including governance and constraints on the executive relative to democracy.

Additional Metadata
Keywords resource dependence, growth, institutions
JEL Agriculture; Natural Resources; Energy; Environment; Other Primary Products (jel O13), Economic Growth and Aggregate Productivity: General (jel O40), Resource Booms (jel Q33)
Publisher International Institute of Social Studies of Erasmus University (ISS)
Persistent URL hdl.handle.net/1765/77766
Series ISS Working Papers - General Series
Journal ISS Working Paper Series / General Series
Citation
Murshed, S.M, Badiuzzaman, M, & Pulok, M.H. (2015). Revisiting the role of the resource curse in shaping institutions and growth (No. 605). ISS Working Paper Series / General Series (Vol. 605, pp. 1–28). International Institute of Social Studies of Erasmus University (ISS). Retrieved from http://hdl.handle.net/1765/77766