IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/25639.html
   My bibliography  Save this paper

Natural resource wealth “a truly double edged sword?”: a comparative study between Iran and Norway

Author

Listed:
  • Nasrollahi Shahri, Nima

Abstract

This is an analytical comparative study done from a historical perspective between Iran and Norway as classic examples of countries touched by resource abundance contrastingly. The study tries to highlight the factors which turn oil riches into a curse so as to serve as a brief practical set of guidelines for countries facing the possibility of a natural resource related revenue increase. This study, however, does not purport to cover all the factors in play, but is rather of an interdisciplinary nature demonstrating the significance of Politics in the fate of Oil-rich countries. An abridged account of the petroleum sector and some other relevant information about the two states is initially given. The study then focuses on historical, economic, management and political differences which could have been influential in the way the two countries have been affected by their riches. A number of key differences are listed and elaborated on in more detail with the aid of examples invoked from similar countries. The study finds that factors such as the political structure of a country as well as its population and timing of oil discoveries, as factors not completely controlled by the state, carry a lot of weight in determining how successful a country is likely to be in managing its resources.

Suggested Citation

  • Nasrollahi Shahri, Nima, 2010. "Natural resource wealth “a truly double edged sword?”: a comparative study between Iran and Norway," MPRA Paper 25639, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:25639
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/25639/1/MPRA_paper_25639.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Silje Aslaksen & Ragnar Torvik, 2006. "A Theory of Civil Conflict and Democracy in Rentier States," Scandinavian Journal of Economics, Wiley Blackwell, vol. 108(4), pages 571-585, December.
    2. Gylfason, Thorvaldur, 2001. "Natural resources, education, and economic development," European Economic Review, Elsevier, vol. 45(4-6), pages 847-859, May.
    3. Larsen, E.Roed., 2005. "Are rich countries immune to the resource curse? Evidence from Norway's management of its oil riches," Resources Policy, Elsevier, vol. 30(2), pages 75-86, June.
    4. Erling Røed Larsen, 2006. "Escaping the Resource Curse and the Dutch Disease?," American Journal of Economics and Sociology, Wiley Blackwell, vol. 65(3), pages 605-640, July.
    5. Atsushi Iimi, 2007. "Escaping from the Resource Curse: Evidence from Botswana and the Rest of the World," IMF Staff Papers, Palgrave Macmillan, vol. 54(4), pages 663-699, November.
    6. Sachs, Jeffrey D. & Warner, Andrew M., 2001. "The curse of natural resources," European Economic Review, Elsevier, vol. 45(4-6), pages 827-838, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Destek, Mehmet Akif & Adedoyin, Festus & Bekun, Festus Victor & Aydin, Sercan, 2023. "Converting a resource curse into a resource blessing: The function of institutional quality with different dimensions," Resources Policy, Elsevier, vol. 80(C).
    2. Badeeb, Ramez Abubakr & Lean, Hooi Hooi & Clark, Jeremy, 2017. "The evolution of the natural resource curse thesis: A critical literature survey," Resources Policy, Elsevier, vol. 51(C), pages 123-134.
    3. BENYOUB, Mohammed, 2018. "L’impact De L’investissement Des Revenus Pétroliers Sur La Croissance, L’inflation Et Le Chômage : Cas D’Algérie (2000-2015) [The Impact of Oil Revenue Investment on Growth, Inflation and Unemploym," MPRA Paper 90489, University Library of Munich, Germany, revised 05 Jul 2018.
    4. Manfred Wiebelt & Rainer Schweickert & Clemens Breisinger & Marcus Böhme, 2011. "Oil revenues for public investment in Africa: targeting urban or rural areas?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 147(4), pages 745-770, November.
    5. Pérez, Claudia & Claveria, Oscar, 2020. "Natural resources and human development: Evidence from mineral-dependent African countries using exploratory graphical analysis," Resources Policy, Elsevier, vol. 65(C).
    6. Akram, Vaseem & Ali, Jabir, 2022. "Do countries converge in natural resources rents? Evidence from club convergence analysis," Resources Policy, Elsevier, vol. 77(C).
    7. Erling Røed Larsen, 2006. "Escaping the Resource Curse and the Dutch Disease?," American Journal of Economics and Sociology, Wiley Blackwell, vol. 65(3), pages 605-640, July.
    8. Dauvin, Magali & Guerreiro, David, 2017. "The Paradox of Plenty: A Meta-Analysis," World Development, Elsevier, vol. 94(C), pages 212-231.
    9. Wu, Sanmang & Lei, Yalin, 2016. "Study on the mechanism of energy abundance and its effect on sustainable growth in regional economies: A case study in China," Resources Policy, Elsevier, vol. 47(C), pages 1-8.
    10. Ramez Abubakr Badeeb & Jeremy Clark & Abey P. Philip, 2021. "The Nonlinear Effects of Oil Rent Dependence on Malaysian Manufacturing: Implications from Structural Change using a Markov-Regime Switching Model," Working Papers in Economics 21/11, University of Canterbury, Department of Economics and Finance.
    11. Tahar, Moez Ben & Slimane, Sarra Ben & Ali Houfi, Mohamed, 2021. "Commodity prices and economic growth in commodity-dependent countries: New evidence from nonlinear and asymmetric analysis," Resources Policy, Elsevier, vol. 72(C).
    12. Kyophilavong, Phouphet & Senesouphap, Chanthachonh & Yawdhacksa, Somnack, 2012. "Resource Boom, Growth and Poverty in Laos: what can we learn from other countries and policy simulations?," PEP Policy Briefs 161661, Partnership for Economic Policy (PEP).
    13. Abdulahi, Mohamued Elyas & Shu, Yang & Khan, Muhammad Asif, 2019. "Resource rents, economic growth, and the role of institutional quality: A panel threshold analysis," Resources Policy, Elsevier, vol. 61(C), pages 293-303.
    14. Xuan Xie & Ke Li & Zhiqiang Liu & Hongshan Ai, 2021. "Curse or blessing: how does natural resource dependence affect city‐level economic development in China?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(2), pages 413-448, April.
    15. Boire, Sidiki & Nell, Kevin S., 2021. "The enclave hypothesis and Dutch disease effect: A critical appraisal of Mali's gold mining industry," Resources Policy, Elsevier, vol. 74(C).
    16. Collier, Paul & Goderis, Benedikt, 2012. "Commodity prices and growth: An empirical investigation," European Economic Review, Elsevier, vol. 56(6), pages 1241-1260.
    17. Chenyu Lu & Dai Wang & Peng Meng & Jiaqi Yang & Min Pang & Li Wang, 2018. "Research on Resource Curse Effect of Resource-Dependent Cities: Case Study of Qingyang, Jinchang and Baiyin in China," Sustainability, MDPI, vol. 11(1), pages 1-21, December.
    18. Marek Szturo & Bogdan Włodarczyk & Alberto Burchi & Ireneusz Miciuła & Karolina Szturo, 2021. "Improving Relations between a State and a Business Enterprise in the Context of Counteracting Adverse Effects of the Resource Curse," Sustainability, MDPI, vol. 13(3), pages 1-14, January.
    19. Lotfalipour, Mohammad Reza & sargolzaie, Ali & Salehnia, Narges, 2022. "Natural resources: A curse on welfare?," Resources Policy, Elsevier, vol. 79(C).
    20. Galina Williams & Ruth Nikijuluw, 2020. "The economic and social benefit of coal mining: the case study of regional Queensland," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(4), pages 1113-1132, October.

    More about this item

    Keywords

    Resource riches; resource curse; Norway; Iran;
    All these keywords.

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • A10 - General Economics and Teaching - - General Economics - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:25639. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.