A Reappraisal of the Resource Curse

Nicolas Clootens (1) , Djamel Kirat (1)

1 LEO - Laboratoire d'Économie d'Orleans [UMR7322]

We here provide some evidence that the growth regression models used to test the resource curse should correctly account for heterogeneities between countries. We reproduce the results in a well-known article by Brunnschweiler and Bulte (2008) and then test their robustness. We show that the impact of resource dependence on growth strongly depends on the way in which we model heterogeneity. We find evidence of the resource curse in low-income countries.

Keywords: Dutch-Disease

Domains: Economics and Finance

Nicolas Clootens, Djamel Kirat. A Reappraisal of the Resource Curse. Economics Bulletin, 2017, 37 (1), pp.12-18. ⟨insu-01526068⟩