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Do Sufficient Institutions Alter the Relationship between Natural Resources And Economic Growth?

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  • Zeynalov, Ayaz

Abstract

The purpose of this paper is to test whether institutional governance and its performance is a main driving force to achieve a positive relationship between natural resources and economic growth in the long run. The main objective is to ascertain what kind of institutional governance would be needed to distribute natural resource wealth in such a way so as to achieve economic stability, and what specific policies are needed to avoid the curse in resource-rich developing countries. The research makes an attempt to interpret the role of institutional governance, as reflected by the indicators, in the context of resource-rich, post-Soviet countries. The main finding is that an abundance of natural resources does not guarantee economic growth, where sustainable economic growth can be guaranteed, only if the resource-rich country has good institutional governance.

Suggested Citation

  • Zeynalov, Ayaz, 2013. "Do Sufficient Institutions Alter the Relationship between Natural Resources And Economic Growth?," MPRA Paper 46850, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:46850
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    Cited by:

    1. Suleymanov, Elchin & Zeynalov, Ayaz & Mammadov, Rufat, 2013. "Analyzıng And Valuıng Of The Export Multıplıcıty Of Azerbaıjan Republıc," MPRA Paper 52306, University Library of Munich, Germany.

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    More about this item

    Keywords

    economic growth; natural resources; institutional governance; post-Soviet countries;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

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