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Natural resources and reforms

Author

Listed:
  • Amin, Mohammad
  • Djankov, Simeon

Abstract

The authors use a sample of 133 countries to investigate the link between the abundance of natural resources and micro-economic reforms. Previous studies suggest that natural resource abundance gives rise to governments that are less accountable to the public and states that are oligarchic, and that it leads to the erosion of social capital. These factors are likely to hamper economic reforms. The authors test this hypothesis using data on micro-economic reforms from the World Bank's Doing Business database. The results provide a robust support for the"resource curse"view: a move from the 75th percentile to the 25th percentile on resource abundance equals 10.9 percentage points more reform. This is a large effect given that the mean probability of reform in the sample is 57.1 percent.

Suggested Citation

  • Amin, Mohammad & Djankov, Simeon, 2009. "Natural resources and reforms," Policy Research Working Paper Series 4882, The World Bank.
    • Handle: RePEc:wbk:wbrwps:4882
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    References listed on IDEAS

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    Cited by:

    1. repec:spo:wpmain:info:hdl:2441/106i379teb8moplr2gknsi2nfd is not listed on IDEAS
    2. Alali, Walid Y., 2010. "Role of Political Institutions on Economic Growth: Empirical Evidence," EconStor Preprints 269879, ZBW - Leibniz Information Centre for Economics.
    3. Khan, Zeeshan & Hussain, Muzzammil & Shahbaz, Muhammad & Yang, Siqun & Jiao, Zhilun, 2020. "Natural resource abundance, technological innovation, and human capital nexus with financial development: A case study of China," Resources Policy, Elsevier, vol. 65(C).
    4. Wang, Ye, 2023. "What drives sustainable development? Evaluating the role of oil and coal resources for selected resource rich economies," Resources Policy, Elsevier, vol. 80(C).
    5. BenYishay, Ariel & Grosjean, Pauline, 2014. "Initial endowments and economic reform in 27 post-socialist countries," Journal of Comparative Economics, Elsevier, vol. 42(4), pages 892-906.
    6. Hans Pitlik & Björn Frank & Mathias Firchow, 2010. "The demand for transparency: An empirical note," The Review of International Organizations, Springer, vol. 5(2), pages 177-195, June.
    7. Leone Leonida & Dario Maimone Ansaldo Patti & Pietro Navarra, 2013. "Testing the Political Replacement Effect: A Panel Data Analysis," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 75(6), pages 785-805, December.
    8. Alali, Walid Y., 2010. "Role of Political Institutions on Economic Growth: Empirical Evidence," MPRA Paper 115611, University Library of Munich, Germany.
    9. repec:hal:spmain:info:hdl:2441/106i379teb8moplr2gknsi2nfd is not listed on IDEAS

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    More about this item

    Keywords

    Economic Theory&Research; Emerging Markets; E-Business; Achieving Shared Growth; Inequality;
    All these keywords.

    JEL classification:

    • K2 - Law and Economics - - Regulation and Business Law
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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