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Addressing the Natural Resource Curse: An Illustration from Nigeria
Open accessAbstract
Some natural resources -oil and minerals in particular -exert a negative and nonlinear impact on growth via their deleterious impact on institutional quality.We show this result to be very robust.The Nigerian experience provides telling confirmation of this aspect of natural resources.Waste and corruption from oil rather than Dutch disease has been responsible for its poor long run economic performance.We propose a solution for addressing this resource curse which involves directly distributing the oil revenues to the public.Even with all the difficulties of corruption and inefficiency that will no doubt plague its actual implementation, our proposal will, at the least, be vastly superior to the status quo.At best, however, it could fundamentally improve the quality of public institutions and, as a result, transform economics and politics in Nigeria.
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Cites
The colonial origins of comparative development: An empirical investigation
Acemoglu, D., Johnson, S., & Robinson, J. A. (2001) · American Economic Review · doi:10.1257/aer.91.5.1369 · Cited by 8,517
Regression Diagnostics: Identifying Influential Data and Sources of Collinearity
Belsley, D. A., Kuh, E., & Welsch, R. E. (1980) · Wiley Series in Probability and Statistics · doi:10.1002/0471725153 · Cited by 7,297
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Rodrik, D., Subramanian, A., & Trebbi, F. (2004) · Journal of Economic Growth · doi:10.1023/b:joeg.0000031425.72248.85 · Cited by 5,423
Self-citationDo natural resources fuel authoritarianism? A reappraisal of the resource curse
HABER, S., & MENALDO, V. (2011) · American Political Science Review · doi:10.1017/s0003055410000584 · Cited by 1,128
The resource curse revisited and revised: A tale of paradoxes and red herrings
Brunnschweiler, C. N., & Bulte, E. H. (2008) · Journal of Environmental Economics and Management · doi:10.1016/j.jeem.2007.08.004 · Cited by 1,121
Resource intensity, institutions, and development
Bulte, E. H., Damania, R., & Deacon, R. T. (2005) · World Development · doi:10.1016/j.worlddev.2005.04.004 · Cited by 788
Cursing the Blessings? Natural Resource Abundance, Institutions, and Economic Growth
Brunnschweiler, C. N. (2008) · World Development · doi:10.1016/j.worlddev.2007.03.004 · Cited by 710
Metadata
- Authors
- Sala-i-Martin, X., & Subramanian, A.
- Venue
- National Bureau of Economic Research
- Publisher
- National Bureau of Economic Research
- Published
- 2003-06
- OpenAlex
- W3121595223
- Cited by
- 416
- References
- 2
- Type
- report
- Language
- en
- Open access
- green
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