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Development Based on Commodity Revenues?

Author

Listed:
  • Sergei Guriev
  • Alexander Plekhanov

    (EBRD - European Bank for Reconstruction and Development - EBRD)

  • Konstantin Sonin

    (State University Higher School of Economics)

Abstract

Commodity resources offer significant opportunities for development. In the long run, however, the performance of commodity - rich countries tends to fall short of expectations, as commodity rents induce macroeconomic volatility and undermine incentives to improve institutions. The resource - rich countries have embraced a range of diversification strategies to avoid the "resource trap", to varying degrees and with varying success. Improving institutions remains the key challenge.

Suggested Citation

  • Sergei Guriev & Alexander Plekhanov & Konstantin Sonin, 2009. "Development Based on Commodity Revenues?," Working Papers hal-03461797, HAL.
    • Handle: RePEc:hal:wpaper:hal-03461797
    Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03461797
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    References listed on IDEAS

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