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Testing the Natural Resource Curse Hypothesis in Indonesia: Evidence at the Regional Level

Author

Listed:
  • Ahmad Komarulzaman

    (Department of Economics, Padjadjaran University)

  • Armida Alisjahbana

    (Department of Economics, Padjadjaran University)

Abstract

Resource curse literatures explain that countries abundant with natural resources tend to grow slower. This hypothesis is relevant for Indonesia as it is a country rich in natural resources. This paper tries to investigate empirically the relationship between resources abundance and its impact on economic development at the regional level using cross section regression approach. The regional financial data from ministry of finance are combined with regional specific data from BPS to seek the pattern. The paper will shed light on whether resources rich regions in Indonesia are trapped in this curse.

Suggested Citation

  • Ahmad Komarulzaman & Armida Alisjahbana, 2006. "Testing the Natural Resource Curse Hypothesis in Indonesia: Evidence at the Regional Level," Working Papers in Economics and Development Studies (WoPEDS) 200602, Department of Economics, Padjadjaran University, revised Aug 2006.
    • Handle: RePEc:unp:wpaper:200602
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    File URL: http://ceds.feb.unpad.ac.id/wopeds/200602.pdf
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    References listed on IDEAS

    as
    1. Brunnschweiler, Christa N., 2008. "Cursing the Blessings? Natural Resource Abundance, Institutions, and Economic Growth," World Development, Elsevier, vol. 36(3), pages 399-419, March.
    2. Atkinson, Giles & Hamilton, Kirk, 2003. "Savings, Growth and the Resource Curse Hypothesis," World Development, Elsevier, vol. 31(11), pages 1793-1807, November.
    3. 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)

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    Cited by:

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    2. Abou-Ali, Hala & Abdelfattah, Yasmine M., 2013. "Integrated paradigm for sustainable development: A panel data study," Economic Modelling, Elsevier, vol. 30(C), pages 334-342.
    3. Liu, Kaiyuan & Afzal, Ayesha & Zhong, Yifan & Hasnaoui, Amir & Yue, Xiao-Guang, 2023. "Investigating the resource curse: Evidence from MENA and N-11 countries," Resources Policy, Elsevier, vol. 80(C).
    4. Tiba, Sofien, 2019. "Modeling the nexus between resources abundance and economic growth: An overview from the PSTR model," Resources Policy, Elsevier, vol. 64(C).
    5. Ariel Macaspac Hernandez & Yudhi Timor Bimo Prakoso, 2021. "The Learning Activation Approach—Understanding Indonesia’s Energy Transition by Teaching It," Energies, MDPI, vol. 14(17), pages 1-19, August.
    6. Erdoğan, Seyfettin & Yıldırım, Durmuş Çağrı & Gedikli, Ayfer, 2020. "Natural resource abundance, financial development and economic growth: An investigation on Next-11 countries," Resources Policy, Elsevier, vol. 65(C).
    7. Hilmawan, Rian & Clark, Jeremy, 2019. "An investigation of the resource curse in Indonesia," Resources Policy, Elsevier, vol. 64(C).
    8. Tiba, Sofien & Frikha, Mohamed, 2019. "The controversy of the resource curse and the environment in the SDGs background: The African context," Resources Policy, Elsevier, vol. 62(C), pages 437-452.
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    More about this item

    Keywords

    Natural resource rent; resource curse hypothesis; Indonesia;
    All these keywords.

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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