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Education, Corruption and the Natural Resource Curse

Author

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  • Aldave, Iván

    (Central Bank of Peru and GREQAM)

  • García-Peñalosa, Cecilia

    (GREQAM and CNRS)

Abstract

The empirical evidence on the determinants of growth across countries has found that growth is lower when natural resources are abundant, corruption widespread and educational attainment low. An extensive literature has examined the way in which these three variables can impact growth, but has tended to address them separately. In this paper we argue that corruption and education are interrelated and that both crucially depend on a country’s endowment of natural resources. The key element is the fact that resources affect the relative returns to investing in human and in political capital, and, through these investments, output levels and growth. In this context, inequality plays a key role both as a determinant of the possible equilibria of the economy and as an outcome of the growth process.

Suggested Citation

  • Aldave, Iván & García-Peñalosa, Cecilia, 2009. "Education, Corruption and the Natural Resource Curse," Working Papers 2009-005, Banco Central de Reserva del Perú.
    • Handle: RePEc:rbp:wpaper:2009-005
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    References listed on IDEAS

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    1. Education, natural resources and corruption
      by Economic Logician in Economic Logic on 2009-07-31 19:46:00

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    Cited by:

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    More about this item

    Keywords

    natural resources; corruption; human capital; growth; inequality;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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