Resource Curse, Institutions and Non-Resource Sector

Alexander Libman

MPRA Paper from University Library of Munich, Germany

Abstract: This note presents a simple model of how resource rents can affect economic growth of a region of a centralized country, where sub-national governments have no authority over resource industries. The growth effect of resources appears to be conditional on the quality of institutions in the non-resource sector. Thus, even if the sub-national government does not affect the resource sector directly,the quality of institutions set by this government still influences whether resource boom has a positive or a negative effect on the economic growth.

Keywords: resource curse; institutions; non-resource sector (search for similar items in EconPapers)
JEL-codes: D73 Q38 (search for similar items in EconPapers)
Date: 2013
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