The Natural Resource Curse and Fiscal Decentralization
© 2015 The Author.Natural resource abundance is a blessing for some countries, but a curse for others. We show that differences across countries in the degree of fiscal decentralization can contribute to this divergent outcome. Using a large panel of countries covering several decades and various fi...
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| Format: | Journal Article |
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Oxford University Press
2016
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| Online Access: | http://ajae.oxfordjournals.org/ http://hdl.handle.net/20.500.11937/62785 |
| Summary: | © 2015 The Author.Natural resource abundance is a blessing for some countries, but a curse for others. We show that differences across countries in the degree of fiscal decentralization can contribute to this divergent outcome. Using a large panel of countries covering several decades and various fiscal decentralization and natural resource measures, we provide empirical support for the novel hypothesis. We also study a model that combines political and market mechanisms under a unified framework to illustrate how natural resource booms may create negative effects in fiscally decentralized nations. |
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