Natural resource abundance, institutional quality and manufacturing development: Evidence from resource-rich countries
By H. Amiri, Farzaneh Samadian, Masoud Yahoo, Seyed Jafar Jamali. Resources policy, 2019
115 citations recorded by the source corpus.
Abstract The past decades provide many examples of the manufacturing sectors of resource-rich countries failing to develop more rapidly than their counterparts in countries lacking such resources. This study evaluates the impacts of natural resource rents and the quality of institutions on performance of tradable and non-tradable sectors in resource-rich countries. It examines data from 2000 to 2016 and the panel data model from 28 countries rich in natural resources and having different levels of institutional quality. The dependent variable is services etc. value added to manufacturing value added ratio. Model estimation results show that in the case of natural resource-dependent economies, this ratio increases unless there is a high level of institutional quality. Various panel regression estimations confirm that, the efficient institutional structure in natural resource-based countries, through alleviating the effects of the natural resource curse phenomenon, improves the manufacturing sector's performance in these economies. The paper concludes with a clear message to policy makers on the contributions of institutions in economic performance. It is apparent that enhancements in institutional quality allow for more effective utilization of a country's rich natural resources in strengthening the manufacturing sector to achieve higher economic growth and to mitigate the effects of the natural resource curse.
Subfields: Building and Construction, Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/81e3003b97548f8a3d5f579685d0c039e65cd53c
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In Building and Construction
In Economics and Econometrics
Citations in the corpus
- Green innovation and China’s CO2 emissions – the moderating effect of institutional quality (2021, methodology): “However, when the abundance of natural resources is combined with high institutional quality, the “resource curse” will become a “resource blessing” (Zall e 2019; Abdulahi, Shu, and Khan 2019; Dwumfour and Ntow-Gyamfi 2018; Amiri et al. 2019; Ji, Magnus, and Wang 2014; Qiang and Jian 2020).”