Institutions and the Volatility Curse

W. Leong & K. Mohaddes
This paper revisits the resource curse paradox and studies the impact of resource rents and their volatility on economic growth under varying institutional quality. Using five-year non-overlapping observations between 1970 and 2005 for 112 countries, we find that while resource rents enhance real output per capita, their volatility exerts a negative impact on economic growth. Therefore, we argue that volatility, rather than abundance per se, drives the resource curse. However, we also find that higher...
This data repository is not currently reporting usage information. For information on how your repository can submit usage information, please see our documentation.