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 compare to the less fortunate one. 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: | Conference or Workshop Item |
| Language: | English |
| Published: |
School of Economics, Faculty of Economics and Management, Universiti Kebangsaan Malaysia
2011
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| Online Access: | http://psasir.upm.edu.my/id/eprint/48875/ http://psasir.upm.edu.my/id/eprint/48875/1/Resource%20curse%20new%20evidence%20on%20the%20role%20of%20institutions.pdf |
| _version_ | 1848851208650883072 |
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| author | Sarmidi, Tamat Jafari, Yaghoob Law, Siong Hook |
| author_facet | Sarmidi, Tamat Jafari, Yaghoob Law, Siong Hook |
| 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 compare to the less fortunate one. 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 are 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 much on natural resources while countries with high quality institution are relatively less dependent to natural resources to generate growth. |
| first_indexed | 2025-11-15T10:18:32Z |
| format | Conference or Workshop Item |
| id | upm-48875 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T10:18:32Z |
| publishDate | 2011 |
| publisher | School of Economics, Faculty of Economics and Management, Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-488752016-12-29T09:35:00Z http://psasir.upm.edu.my/id/eprint/48875/ Resource curse: new evidence on the role of institutions Sarmidi, Tamat Jafari, Yaghoob Law, Siong Hook 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 compare to the less fortunate one. 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 are 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 much on natural resources while countries with high quality institution are relatively less dependent to natural resources to generate growth. School of Economics, Faculty of Economics and Management, Universiti Kebangsaan Malaysia 2011 Conference or Workshop Item PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/48875/1/Resource%20curse%20new%20evidence%20on%20the%20role%20of%20institutions.pdf Sarmidi, Tamat and Jafari, Yaghoob and Law, Siong Hook (2011) Resource curse: new evidence on the role of institutions. In: Sixth Malaysian National Economic Conference (PERKEM VI), 5-7 June 2011, Melaka, Malaysia. (pp. 15-26). http://www.ukm.my/fep/perkem/contents/perkem2011-2-01.html |
| spellingShingle | Sarmidi, Tamat Jafari, Yaghoob Law, Siong Hook 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/48875/ http://psasir.upm.edu.my/id/eprint/48875/ http://psasir.upm.edu.my/id/eprint/48875/1/Resource%20curse%20new%20evidence%20on%20the%20role%20of%20institutions.pdf |