Resource curse: new evidence on the role of institutions
This paper attempts to provide a probable answer to a longstanding resource curse puzzle; i.e., why resource-rich nations grow at a slower rate compared to less fortunate ones. Using an innovative threshold estimation technique, the empirical results reveal that there is a threshold effect in the na...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Taylor & Francis
2014
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| Online Access: | http://psasir.upm.edu.my/id/eprint/35237/ http://psasir.upm.edu.my/id/eprint/35237/1/Resource%20curse.pdf |
| _version_ | 1848847998652514304 |
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| author | Sarmidi, Tamat Law, Siong Hook Jafari, Yaghoob |
| author_facet | Sarmidi, Tamat Law, Siong Hook Jafari, Yaghoob |
| author_sort | Sarmidi, Tamat |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This paper attempts to provide a probable answer to a longstanding resource curse puzzle; i.e., why resource-rich nations grow at a slower rate compared to less fortunate ones. Using an innovative threshold estimation technique, the empirical results reveal that there is a threshold effect in the natural resources – economic growth relationship. We find that the impact of natural resources is meaningful to economic growth only after a certain threshold point of institutional quality has been attained. The results also shed light on the fact that the nations that have low institutional quality depend heavily on natural resources while countries with high quality institutions are relatively less dependent on natural resources to generate growth. |
| first_indexed | 2025-11-15T09:27:31Z |
| format | Article |
| id | upm-35237 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T09:27:31Z |
| publishDate | 2014 |
| publisher | Taylor & Francis |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-352372016-10-10T01:28:03Z http://psasir.upm.edu.my/id/eprint/35237/ Resource curse: new evidence on the role of institutions Sarmidi, Tamat Law, Siong Hook Jafari, Yaghoob This paper attempts to provide a probable answer to a longstanding resource curse puzzle; i.e., why resource-rich nations grow at a slower rate compared to less fortunate ones. Using an innovative threshold estimation technique, the empirical results reveal that there is a threshold effect in the natural resources – economic growth relationship. We find that the impact of natural resources is meaningful to economic growth only after a certain threshold point of institutional quality has been attained. The results also shed light on the fact that the nations that have low institutional quality depend heavily on natural resources while countries with high quality institutions are relatively less dependent on natural resources to generate growth. Taylor & Francis 2014 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/35237/1/Resource%20curse.pdf Sarmidi, Tamat and Law, Siong Hook and Jafari, Yaghoob (2014) Resource curse: new evidence on the role of institutions. International Economic Journal, 28 (1). pp. 191-206. ISSN 1016-8737; ESSN: 1743-517X http://www.tandfonline.com/doi/abs/10.1080/10168737.2013.787110#.Vm2TwMXp0dU 10.1080/10168737.2013.787110 |
| spellingShingle | Sarmidi, Tamat Law, Siong Hook Jafari, Yaghoob Resource curse: new evidence on the role of institutions |
| title | Resource curse: new evidence on the role of institutions |
| title_full | Resource curse: new evidence on the role of institutions |
| title_fullStr | Resource curse: new evidence on the role of institutions |
| title_full_unstemmed | Resource curse: new evidence on the role of institutions |
| title_short | Resource curse: new evidence on the role of institutions |
| title_sort | resource curse: new evidence on the role of institutions |
| url | http://psasir.upm.edu.my/id/eprint/35237/ http://psasir.upm.edu.my/id/eprint/35237/ http://psasir.upm.edu.my/id/eprint/35237/ http://psasir.upm.edu.my/id/eprint/35237/1/Resource%20curse.pdf |