A Review on the Resource Curse

  • László Szalai Department of Economics, Faculty of Economics and Social Sciences, Budapest University of Technology and Economics, Hungary

Abstract

Natural wealth is generally considered as one of the fundamental sources of economic growth. However, a vast majority of the related empirical research verified that resource-rich countries tend to underperform their resource-deficient counterparts. This paradox is known as the resource curse. During the past two decades more sophisticated analyses have revealed that the presence of the curse is conditional and its growth effects are non-monotonic. Recent efforts concentrate on understanding the transmission channels and identifying the decisive conditions on the fulfillment of the curse. This article gives an overview on the progress and depicts the current state of the research.

Keywords: economic growth, resource curse, Dutch disease, institutional quality, genuine savings, crowding-out, sustainable development
Published online
2018-02-23
How to Cite
Szalai, L. (2018) “A Review on the Resource Curse”, Periodica Polytechnica Social and Management Sciences, 26(2), pp. 179-189. doi: https://doi.org/10.3311/PPso.10021.
Section
Articles