dc.contributor.author | VAN DER PLOEG, Frederick | |
dc.contributor.author | POELHEKKE, Steven | |
dc.date.accessioned | 2007-10-27T08:05:00Z | |
dc.date.available | 2007-10-27T08:05:00Z | |
dc.date.issued | 2007 | |
dc.identifier.issn | 1725-6704 | |
dc.identifier.uri | https://hdl.handle.net/1814/7337 | |
dc.description.abstract | Cross-country evidence is presented on resource dependence and the link between volatility and
growth. First, growth depends negatively on volatility of unanticipated output growth
independent of initial income per capita, the average investment share, initial human capital, trade
openness, the national income share of natural resource exports and population growth. Second,
the adverse effect of resources on growth operates primarily through higher volatility. The
positive effect of resources on growth is positive, but can be swamped by the indirect negative
effect through volatility. Third, with well developed financial sectors, the resource curse is less
pronounced. Fourth, landlocked countries with ethnic tensions have higher volatility and lower
growth. Fifth, restrictions on the current account lead to higher volatility and lower growth, but
capital account restrictions lower volatility and boost growth. These effects are especially strong
in resource-rich countries. We also present IV-estimates to correct for the endogenous nature of
investment rates and panel estimates to allow for possible changes in explanatory variables over
time. Our key message is that volatility is a quintessential feature of the resource curse. | en |
dc.format.mimetype | application/pdf | |
dc.language.iso | en | en |
dc.publisher | European University Institute | |
dc.relation.ispartofseries | EUI ECO | en |
dc.relation.ispartofseries | 2007/36 | en |
dc.rights | info:eu-repo/semantics/openAccess | |
dc.subject | volatility | en |
dc.subject | growth | en |
dc.subject | resource curse | en |
dc.subject | financial development | en |
dc.subject | openness | en |
dc.subject | landlocked | en |
dc.subject | ethnic tensions | en |
dc.subject | restrictions on current and capital account | en |
dc.subject | C12 | en |
dc.subject | C21 | en |
dc.subject | C23 | en |
dc.subject | F43 | en |
dc.subject | G20 | en |
dc.subject | O11 | en |
dc.subject | O41 | en |
dc.subject | Q32 | en |
dc.title | Volatility, Financial Development and the Natural Resource Curse | en |
dc.type | Working Paper | en |
dc.neeo.contributor | VAN DER PLOEG|Frederick|aut| | |
dc.neeo.contributor | POELHEKKE|Steven|aut| | |
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