Are Natural Resources Cursed? an Investigation of the Dynamic Effects of Mineral Fuels Exports on Governance and Competition

Donato De Rosa (The World Bank)
Mariana Iootty (The World Bank)

Abstract: This paper examines the nature of the dynamic interaction between resource dependence, measured as the share of mineral fuels in total exports, and the evolution of six dimensions of institutional quality. These are based on the Governance and Anti-Corruption Project of the World Bank Institute, which estimates six indicators (Voice and Accountability, Political Stability and Absence of Violence/Terrorism, Government Effectiveness, Regulatory Quality, Rule of Law, and Control of Corruption), covering 212 countries and territories for the period 1996 to 2009. Results indicate that a high degree of resource dependence is associated with worse government effectiveness, as well as with reduced levels of competition across the economy

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