scholarly journals An Alternative Interpretation of the 'Resource Curse': Theory and Policy Implications

10.3386/w9424 ◽  
2003 ◽  
Author(s):  
Ricardo Hausmann ◽  
Roberto Rigobon
Keyword(s):  
Resource Curse ◽  
Alternative Interpretation ◽  
Policy Implications

scholarly journals A Multivariate VAR Model for Evaluating Sustainable Finance and Natural Resource Curse in West Africa: Evidence from Nigeria and Ghana

2021 ◽  
Vol 13 (5) ◽  
pp. 2847
Author(s):  
Olatunji Abdul Shobande ◽  
Joseph Onuche Enemona
Keyword(s):  
Natural Resource ◽  
Critical Role ◽  
Resource Curse ◽  
Policy Implications ◽  
Vector Autoregressive ◽  
Natural Resource Curse ◽  
Cointegration Tests ◽  
Sustainable Finance ◽  
Private Investors ◽  
Sustainable Financing

The financial sector plays a critical role in society by mediating resources and assets within the economy between surplus and deficit units. Therefore, they have a great responsibility for the sustainability and prosperity of natural endowments. This study aimed to determine whether sustainable finance matters for the natural resource curse in Nigeria and Ghana. The empirical evidence is based on the Bayer and Hanck combined cointegration tests and Vector Autoregressive/Vector Error Correction Granger causality tests. The study highlights the importance of sustainable financing in natural resources management. Our findings also confirmed the existence of the financial resource curse in Nigeria and Ghana. Likewise, the medium through which sustainable finance affects the natural resource curse has been identified as the human development index (economic welfare). This current study has critical policy implications that suggest the need to establish a vibrant, sustainable financing strategy to assist domestic private investors with a strong interest in natural resource exploration and development, taking into account macroeconomic sustainability. Additionally, it also important to build a strong financial market which allows for policies designed to promote natural resource management.

scholarly journals Environment based innovation: policy questions

Finisterra ◽  
2012 ◽  
Vol 44 (88) ◽  
Author(s):  
Argentino Pessoa ◽  
Mário Rui Silva
Keyword(s):  
Regional Development ◽  
Innovation Policy ◽  
Resource Curse ◽  
Policy Implications ◽  
Competitive Advantages ◽  
Environmental Resources ◽  
Regional Innovation ◽  
Public Intervention ◽  
The Relationship ◽  
Innovation Policies

Natural resources and physical cultural resources, referred to in this paper as “Environmental Resources”, can be important assets for regional competitiveness and innovation. In recent years, these types of assets have been increasingly taken into consideration in the design and implementation of regional development strategies, as a consequence of their potential role as a source of differentiation and of new competitive advantages. However, in contrast to environmental policies, which usually focus on the protection of the environment, innovation policies and their instruments are largely shaped by, and geared towards, knowledge-based innovation.In this paper, we discuss the role played by environmental resources in the context of regional innovation policies. We begin by discussing the relationship between environmental resources and regional development, and by emphasizing some contrasting views with regard to the function of environmental resources in regional development. Then, we address the relationship between regional competitive advantages and innovation strategies. The specific issues and problems that arise whenever the aim is to attain competitive advantages through the valorisation of environmental resources constitute the core of section III. In that section, we highlight the specific characteristics of environmental resources and we discuss the applicability of the “natural resource curse” argument to the dynamics based on the valorisation of environmental resources. The reasons that justify public intervention as well as the difficulties concerning the adequate level of intervention (local / regional / national) are also examined. The paper ends with some conclusions and policy implications.

scholarly journals Economic Diversity and the Resource Curse: A Dynamic Panel Model

2018 ◽  
Author(s):  
Fred Olayele ◽  
Kwok Soo
Keyword(s):  
Economic Growth ◽  
Resource Curse ◽  
Dynamic Panel Data ◽  
Policy Implications ◽  
Panel Data Models ◽  
Dynamic Panel ◽  
Dynamic Panel Model ◽  
Economic Diversity ◽  
Panel Model ◽  
The Impact

This paper contributes to the debate on the impact of economic diversity and the resource curse on economic growth. We use dynamic panel data models on data on Canadian and US sub-national jurisdictions. We find evidence for a positive relationship between diversity and growth. Based on the Krugman Specialization Index, our analysis shows that the required threshold for not having the resource curse is 0.209. Above this threshold, the marginal contribution of natural resources to economic growth is lower for a more diversified regional economy than a less diversified one. We highlight the policy implications of these findings.

scholarly journals Economic Growth and Socioeconomic Sustainability in BRICS Countries: A Vector Error Correction Modeling Approach

2021 ◽  
Vol 13 (3(J)) ◽  
pp. 1-23
Author(s):  
Olawumi Dele Awolusi
Keyword(s):  
Economic Growth ◽  
Resource Curse ◽  
Active Role ◽  
Negative Influence ◽  
Policy Option ◽  
Policy Implications ◽  
Policy Options ◽  
Causality Test ◽  
Brics Countries ◽  
Growth Policy

A major problem to the BRICS goal of achieving sustainable economic growth for members is the increasing level of socioeconomic inequality in the bloc. Consequently, the purpose of this study is to understand the influence of economic growth on socio-economic sustainability in the BRICS countries, using a yearly dataset from 1990 to 2019. A multivariate co-integration technique by Johansen and Juselius and Granger causality test were used to establish the relationships. Findings confirmed co-integration and short-run causal relationships. The most interesting results were the negative influence of economic growth on socio-economic inequality, tacit support for the resource curse hypothesis. The paper concluded that a common policy option was not possible and that for the block to pursue its economic prosperity goals without compromising individual countries' needs for socioeconomic sustainability, varied policy options were inevitable. The policy implications and recommendations are straightforward: the radical legal basis for the transition from natural resource export, as well as, sweeping regulation for the sustainable usage of natural resources protection, strict penalties on violations of environment-related laws and policies to enhance, general country-wide support. In addition, there may be an urgent need to define the active role of NGOs and other independent institutions in promoting socioeconomic equality (sustainability) practices and concepts at both local and national levels, enhanced social programs; market development, Integration of existing policies and creation of societal culture. Consequently, to the best of the researcher’s knowledge, no study has investigated comprehensibly (along with multiple determinants) the sustainability of growth policy options within BRICS with an aim to proposing socioeconomic sustainability and growth policy options.

The Principal Findings and some Policy Implications

2018 ◽  
pp. 205-224
Author(s):  
Richard M. Auty ◽  
Haydn I. Furlonge
Keyword(s):  
Import Substitution ◽  
Resource Curse ◽  
The Philippines ◽  
Policy Implications ◽  
Sub Saharan Africa ◽  
Resource Rent ◽  
High Rent ◽  
Gulf States ◽  
Sub Saharan ◽  
Natural Resource Rent

The resource curse is part of a broader rent curse linked to geopolitical rent, regulatory rent, and labour rent, as well as natural resource rent. Variation in the intensity of rent curse effects reflects major shifts in policy fashion. It declined with the post-1980s dismantling of industrialization by import substitution. Previously, low rent incentivized the pursuit of policies promoting efficient economic growth under hard budget constraints in East Asia and Mauritius (and now in Bangladesh, Vietnam, and the Philippines). High rent in Latin America and sub-Saharan Africa led to staple trap trajectories associated with protracted growth collapses. However, labour surplus South Asia and the Gulf states can learn from policy errors to, respectively, pursue labour-intensive growth and merge dualistic labour markets as part of a package of sector neutral policies, macroeconomic stability, and an enabling environment.

scholarly journals The electric vehicle revolution: Economic and policy implications for natural resource exporters in developing countries

2020 ◽  
Author(s):  
Benjamin Jones
Keyword(s):  
Developing Countries ◽  
Electric Vehicle ◽  
Resource Curse ◽  
Policy Implications ◽  
Raw Material ◽  
Future Market ◽  
Cobalt Nickel ◽  
Market Transformation ◽  
Vehicle Demand ◽  
Effective Policy

The emergence of a mass market for electric vehicles (EVs) offers considerable development opportunities for resource exporters, given their intensive raw material requirements, including for cobalt, nickel, lithium, copper, aluminium, and manganese. To exploit the benefits of new demand, empirical evidence on the ‘resource curse’ increasingly points to the benefits of strengthening institutions for effective policy management and to mitigate the risk of poorly directed, often excessively procyclical, investment. With many developing countries staking major claims for expanding domestic electric vehicle raw material industries, these issues appear highly pertinent, not least given their complexity, opacity, and volatility. This paper analyses both the outlook for electric vehicle demand and associated raw material usage, as well as the key drivers and sensitivities required to track future market transformation. It subsequently assesses key fiscal, regulatory, and institutional reform priorities and market barriers bearing on successful domestic resource mobilization in these resource chains.

scholarly journals When Disasters Hit Civil Wars: Natural Resource Exploitation and Rebel Group Resilience

2021 ◽  
Author(s):  
Yasutaka Tominaga ◽  
Chia-yi Lee
Keyword(s):  
Natural Resources ◽  
Natural Disasters ◽  
Natural Resource ◽  
Resource Curse ◽  
Rapid Onset ◽  
Policy Implications ◽  
Funding Source ◽  
Resource Exploitation ◽  
Rebel Groups ◽  
Rebel Group

Abstract Existing literature on the relationship between natural disasters and conflicts provides mixed findings. In this article, we argue that whether natural disasters hurt rebel group resilience depends on their funding source and the mode of resource extraction. Rebel groups that obtain their funding from natural resources are more susceptible to natural disasters because this funding source could be easily disrupted by rapid-onset disasters. How rebel groups exploit natural resource wealth also conditions the effect of natural disasters on rebel group resilience. Rebel groups that depend on extorting resource production, despite having a seemingly stable revenue stream, are more likely to face funding cuts after a severe natural disaster. In contrast, rebel groups that rely on smuggling natural resources, due to a higher level of flexibility and mobility, are more likely to survive natural disasters. We test our arguments using data on armed groups, natural disasters, and rebel contraband, and the results of the logit models with interaction terms support our hypotheses. Our findings bridge the environmental conflict literature and the resource curse literature, and offer important policy implications.

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