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dc.contributor.authorVAN DER PLOEG, Frederick
dc.contributor.authorPOELHEKKE, Steven
dc.date.accessioned2007-10-27T08:05:00Z
dc.date.available2007-10-27T08:05:00Z
dc.date.issued2007
dc.identifier.issn1725-6704
dc.identifier.urihttp://hdl.handle.net/1814/7337
dc.description.abstractCross-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.mimetypeapplication/pdf
dc.language.isoenen
dc.publisherEuropean University Institute
dc.relation.ispartofseriesEUI ECOen
dc.relation.ispartofseries2007/36en
dc.rightsinfo:eu-repo/semantics/openAccess
dc.subjectvolatilityen
dc.subjectgrowthen
dc.subjectresource curseen
dc.subjectfinancial developmenten
dc.subjectopennessen
dc.subjectlandlockeden
dc.subjectethnic tensionsen
dc.subjectrestrictions on current and capital accounten
dc.subjectC12en
dc.subjectC21en
dc.subjectC23en
dc.subjectF43en
dc.subjectG20en
dc.subjectO11en
dc.subjectO41en
dc.subjectQ32en
dc.titleVolatility, Financial Development and the Natural Resource Curseen
dc.typeWorking Paperen
dc.neeo.contributorVAN DER PLOEG|Frederick|aut|
dc.neeo.contributorPOELHEKKE|Steven|aut|
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