Understanding the Boom

2020 ◽  
pp. 27-50
Author(s):  
Mark Henstridge
Keyword(s):  
Economic Development ◽  
Structural Change ◽  
Natural Resources ◽  
Developing Country ◽  
Natural Resource ◽  
Resource Curse ◽  
Resource Discovery ◽  
Resource Endowment ◽  
Near Future

This chapter sets out a framework for thinking about the challenges presented by a natural resource boom. A significant natural resource discovery creates excited expectations of near-future wealth. But the size of a boom is usually overestimated and the delay in receiving revenues is underestimated—each country that finds the opportunity of natural resources disappointing does so in its own way. The author takes stock of the sequencing, timing, and scale of the development of a natural resource endowment in a developing country; reviews the ‘resource curse’ literature; looks at benchmarks of scale and timing so as to put potential booms into the context of the challenges of economic development, growth, and structural change in Africa, including the role played by institutions. In concluding, the author details key challenges for a developing country managing a natural resource boom, and pulls together observations on policy.

scholarly journals THE POLITICAL ECONOMY OF RESOURCE CURSE AND THE NIGER DELTA CRISIS IN NIGERIA: MATTERS ARISING

2012 ◽  
Vol 1 (2) ◽  
pp. 235
Author(s):  
Robert O. Dode
Keyword(s):  
Political Economy ◽  
Natural Resources ◽  
Natural Resource ◽  
Niger Delta ◽  
Resource Curse ◽  
Political Conflict ◽  
Resource Endowment ◽  
The World ◽  
The Stability ◽  
The Third World

Political economy literature is awash with analyses that attempt to identify the corereasons behind the development and or underdevelopment of different states and zonesof the world. Two major questions that such studies attempt to answer are, “how does astate’s natural resource wealth influence its economic development?” and “How doesnatural resource endowment contribute to political conflict in countries that are soendowed?” For some decades now, the exploitation of natural resources has been adetermining factor in the stability or otherwise of natural resource rich states. Studieshave shown that the exploitation of natural resources like crude oil, columbite anddiamond have contributed to a number of civil wars and internal crises in Africa. InNigeria, it has been a case of armed struggle in the Niger Delta creeks; between militantsand federal forces posted to secure the area. The result is that instead of yielding foreignexchange and prosperity to the citizens of the countries so endowed, the presence of suchresource, constitute a major source of political conflict within nations, resulting in suchcountries being referred to as the poorest of the poor in the world. Some studies indicatethe fact that these problems evolve from politics surrounding ownership, management,and control of natural resources in Africa. It is in the face of this reality that we attemptto situate Nigeria’s Niger Delta crisis in this resource curse matrix and propose thehypothesis that, there is a relationship between the resource curse theory and the NigerDelta crisis in Nigeria. Our findings agree with the core assumption of this paradigm thatinstead of ushering in development, poor management of resources, greed and badgovernance in the third world contribute greatly to her underdevelopment, strife andpoverty, in the midst of abundant natural resources.

scholarly journals GOOD GOVERNANCE AND NATURAL RESOURCE CURSE; WHICH HYPOTHESIS IS PREVAILING IN ASEAN ECONOMIES?

2020 ◽  
Vol 28 (1) ◽  
pp. 45-54
Author(s):  
Deden Iskandar ◽  
Robertus Mulyo Hendarto ◽  
Adhevyo Reza
Keyword(s):  
Economic Development ◽  
Natural Resources ◽  
Natural Resource ◽  
Good Governance ◽  
Resource Curse ◽  
Political Stability ◽  
The Other ◽  
Natural Resource Curse ◽  
Governance Practices ◽  
Control Of Corruption

This study aims to find the relevance of the natural resource curse and good governance hypothesis in ASEAN economies post-financial crises 1998. Employing Generalized Method of Moments (GMM), this study finds that good governance practices (Control of Corruption, Political Stability, and Voice and Accountability) play a role in the ASEAN economies after the great financial crisis. Thus, the hypothesis stating that good governance practices will improve economic development is confirmed. On the other hand, the observation of the natural resource curse hypothesis in ASEAN countries returns mixed results. The hypothesis states that natural resource abundance is associated with lower economic performance. This study finds that dependence on the natural resource by itself does not affect GDP. However, the natural resource curse occurs when countries with bad governance (low Control of Corruption) depend on agriculture resources. On the other hand, the natural resource becomes a blessing when the countries that rely on agriculture resources are supported with good governance practices in terms of strong Government Effectiveness, Political Stability, and Voice and Accountability.  Thus, the effect of natural resources on economic development depends on the quality of governance. This paper highlights the importance of observing the natural resource and good governance in interaction instead of in isolation and the relevance of disaggregating the indicators of good governance as well as natural resources.

The Study of the Relationship between Natural Resource Abundance and Economic Growth

2013 ◽  
Vol 734-737 ◽  
pp. 3337-3341 ◽  
Author(s):  
Zhin Bin Li ◽  
Hong Juan Deng ◽  
An Shun Cheng
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Natural Resources ◽  
Natural Resource ◽  
Policy Recommendations ◽  
Resource Abundance ◽  
The Relationship

The interrelationship between natural resource and economic development, hasn't reached an agreement. Some economists believe that rich natural resources promote economic growth. On the contrary, some economists think that rich natural resources hinder economic growth. Based on previous studies, this paper studies the relationship between natural resource and economic growth in our country. We try to explain the "Curse of Resources" through an example of Shanxi. Finally, we give some policy recommendations to avoid the "Curse of Resources".

scholarly journals THE MOTIVATIONAL EFFECT OF OIL EXPLORATION IN SOMALI AND THE HABITUAL AFRICAN RESOURCE CURSE

2020 ◽  
Vol 5 (1) ◽  
pp. 1
Author(s):  
Mahad Mohamed Sheik
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Natural Resources ◽  
Industrial Development ◽  
Resource Curse ◽  
Empirical Literature ◽  
Regulatory Body ◽  
Oil Exploration ◽  
African Countries ◽  
Motivational Effect

Purpose: The abundance of natural resources is usually considered the blessing for the countries that own such resources. However, such wealth is often associated with poverty and a slower economic growth. This phenomenon is called the resource curse, and it shows that most countries that are rich in natural resources have markedly reduced economic growth and development, and it shows that the wealth of natural resources adversely affects their economies, although it is intuitively expected to be the opposite i.e. that such wealth would have a positive impact on the country’s economic development. The general objective of the study was to find out the motivational effect of oil exploration in Somali and the habitual African resource curse. Methodology: The paper used a desk study review methodology where relevant empirical literature was reviewed to identify main themes and to extract knowledge gaps. Findings: The study found out that Oil resource exploration has led to progress in some developed economies such as Canada which was able to avoid the resource curse. This is because oil revenues helped Canada among other countries make investments in capital, build employment and grow. Other countries such as Russia and Japan have not been able to avoid the resource curse. African countries in general where the majority of oil producing nations are, have an inverse correlation between oil production and industrial development. Examples of African countries that have been affected by the resource curse are Nigeria, Angola, South Africa and Zimbabwe. Empirical results indicate that, Somalia motivation for oil exploration is for economic development. However, it has not been spared the resource curse because the presence of oil has led to civil wars and terrorisms as groups seek to control the areas with oil fields. In addition, Somali and Kenya have involved diplomatic warfare over oil reserves that are located in the Indian Ocean near their borders. Recommendations: The study recommends that the government should enact laws which will govern petroleum operations, as well as empowering the Somali Petroleum Authority,(SPA) which will act as a regulatory body overseeing oil and gas activity.

NATURAL RESOURCES AND QUALITY OF LIFE: INTERNATIONAL EVIDENCE

2020 ◽  
pp. 1-14
Author(s):  
ANTON VASKOVSKYI
Keyword(s):  
Quality Of Life ◽  
Economic Development ◽  
Natural Resources ◽  
Natural Resource ◽  
Capital Accumulation ◽  
Resource Dependence ◽  
Social Progress ◽  
Resource Rents ◽  
Natural Resource Dependence

There has been a growing scholarly interest in the links between natural resources and socio-economic development. While numerous studies offer robust evidence on the detrimental effects of natural resource dependence on economic outcomes, no study has robustly investigated the link between natural resource dependence and quality of life across countries. The aim of this study is to address this gap in the literature by investigating the relationship between natural resource dependency and social progress. Using the cross-country data from 143 countries for the period of 2012 to 2019, we find that resource rents are significantly and negatively linked to the Social Progress Index. Moreover, this effect remains robust even after controlling the potential transmission channels such as governance, economic development and human capital accumulation.

scholarly journals Vulnerability and policy responses in the face of natural resource discoveries and climate change: introduction

2018 ◽  
Vol 23 (5) ◽  
pp. 517-526 ◽  
Author(s):  
John Cockburn ◽  
Martin Henseler ◽  
Hélène Maisonnave ◽  
Luca Tiberti
Keyword(s):  
Climate Change ◽  
Developing Countries ◽  
Natural Resources ◽  
Natural Resource ◽  
Computable General Equilibrium ◽  
Resource Curse ◽  
Local Context ◽  
Natural Resource Economics ◽  
Computable General Equilibrium Models ◽  
Challenges And Opportunities

AbstractThis special issue contributes to the natural resource economics literature by shining a light on the specific challenges and opportunities faced by developing countries that have recently become dependent on natural resources or are particularly exposed to climate change. It is composed of five studies on countries from all regions of the developing world, involving a variety of natural resources and policy issues. Four of the five studies illustrate how computable general equilibrium models are particularly well-suited, despite their relatively limited past use, to the analysis of natural resources. All five studies are led by researchers based in these countries, providing unique insights into the specific local context. The studies underscore the extreme vulnerability that the introduction of significant natural resource revenues and climate change can create in developing countries. They also show how the choice of appropriate policies to avoid the resource curse varies according to country-specific economic conditions.

An Institutional Resource Curse in Argentina and Brazil

Dragonomics ◽  
2020 ◽  
pp. 153-190
Author(s):  
Carol Wise
Keyword(s):  
Natural Resources ◽  
Development Strategy ◽  
Natural Resource ◽  
Economic Performance ◽  
Resource Curse ◽  
Resource Abundance ◽  
The Third ◽  
Rise Of China ◽  
The Rise Of China

This chapter details the incorporation of Argentina and Brazil into China’s internationalized development strategy as its demand for natural resources skyrocketed. In doing so, it considers the effects of institutional weakness and natural resource abundance on economic performance and the ways effective institutions deteriorate during a commodity boom. It proceeds in three sections: the first analyzing the rise of China in Argentina and Brazil post-2000, the second reviewing the developmentalist model both countries implemented during that time, and the third analyzing the resulting institutional erosion.

Corruption and banking soundness: Does natural resource dependency matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hamid Kordbacheh ◽  
Seyedeh Zahra Sadati
Keyword(s):  
Natural Resources ◽  
Natural Resource ◽  
Resource Curse ◽  
Banking System ◽  
Destructive Effect ◽  
Data Set ◽  
Content Type ◽  
Factors Affecting ◽  
Resource Rents ◽  
Almost All

Purpose The natural resources curse theory argues the higher dependency on natural resources leads to many socio-economic problems. The purpose of this study is to examine the relationship between corruption and banking soundness and also to compare the extent of this effect between the two groups of rich and poor in natural resources countries. Design/methodology/approach To this aim, the authors apply a panel data set comprised of 98 countries from 2012 to 2015. Findings The results show that nations with a higher level of corruption have poorer banking soundness. The authors also find that by considering the resource curse theory and the effect of natural resource rents in the model, the adverse impact of corruption on banking soundness is more substantial in countries with a higher natural dependency level (rich in natural resources). Originality/value Though studies have been conducted on corruption and banking soundness, this paper, by using resources curse theory, articulates that corruption is one of the most critical factors affecting banking soundness and has a destructive effect on the health of the banking system and the economy of almost all countries, especially in natural resource-based economies. This study will appeal to banks authorities, governments, policymakers, oversight financial institutions and those who have a vested interest in regulating financial crimes globally. They can prevent financial and banking crises by cooperating in the fight against corruption worldwide.

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