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Bananas, oil, and development: examining the resource curse and its transmission channels by resource type

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  • Lay, Jann
  • Omar Mahmoud, Toman

Abstract

This paper examines the resource curse and its transmission channels by resource type. We review and synthesize existing theories of the transmission channels of the curse. This synthesis suggests that (1) relating the transmission channels to the characteristics of different types of resources, and (2) considering how other country characteristics, such as institutional quality and policy outcomes, affect the impact of natural resource wealth on development, would improve our understanding of the functioning of the curse. We then assess these two aspects empirically and find different transmission channels to be relevant for different types of resources. Furthermore, we illustrate the interaction between other country characteristics and the curse.

Suggested Citation

  • Lay, Jann & Omar Mahmoud, Toman, 2004. "Bananas, oil, and development: examining the resource curse and its transmission channels by resource type," Kiel Working Papers 1218, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:1218
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    Cited by:

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    2. Matthias Basedau, 2005. "Context Matters – Rethinking the Resource Curse in Sub-Saharan Africa," Economic History 0508002, University Library of Munich, Germany.
    3. Rabah Arezki & Frederick van der Ploeg, 2007. "Can the Natural Resource Curse Be Turned into a Blessing? The Role of Trade Policies and Institutions," Economics Working Papers ECO2007/35, European University Institute.
    4. Frederick van der Ploeg, 2011. "Natural Resources: Curse or Blessing?," Journal of Economic Literature, American Economic Association, vol. 49(2), pages 366-420, June.
    5. Vittorio Daniele, 2011. "Natural Resources and the 'Quality' of Economic Development," Journal of Development Studies, Taylor & Francis Journals, vol. 47(4), pages 545-573.
    6. Yilanci, Veli & Aslan, Murat & Ozgur, Onder, 2021. "Disaggregated analysis of the curse of natural resources in most natural resource-abundant countries," Resources Policy, Elsevier, vol. 71(C).
    7. Rabah Arezki & Frederick van der Ploeg, 2011. "Do Natural Resources Depress Income Per Capita?," Review of Development Economics, Wiley Blackwell, vol. 15(3), pages 504-521, August.
    8. Jann Lay & Rainer Thiele & Manfred Wiebelt, 2008. "Resource Booms, Inequality, And Poverty: The Case Of Gas In Bolivia," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 54(3), pages 407-437, September.
    9. Janda, Karel & Quarshie, Gregory, 2017. "Natural Resources, Oil and Economic Growth in Sub-Saharan Africa," MPRA Paper 76748, University Library of Munich, Germany.
    10. Basedau, Matthias, 2005. "Context Matters – Rethinking the Resource Curse in Sub-Saharan Africa," GIGA Working Papers 1, GIGA German Institute of Global and Area Studies.
    11. Andrea Cori & Salvatore Monni, 2014. "The Resource Curse Hypothesis: Evidence from Ecuador," SEEDS Working Papers 2814, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Oct 2014.
    12. Asiamah, Oliver & Agyei, Samuel Kwaku & Bossman, Ahmed & Agyei, Ellen Animah & Asucam, Joseph & Arku-Asare, Michael, 2022. "Natural resource dependence and institutional quality: Evidence from Sub-Saharan Africa," Resources Policy, Elsevier, vol. 79(C).

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    More about this item

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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