Corruption and the Political Economy of Resource-Based Development: A Comparison of Asia and Sub-Saharan Africa

Posted: 17 Feb 2011

See all articles by Edward B. Barbier

Edward B. Barbier

Colorado State University, Fort Collins - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: 2010

Abstract

We model how the "supply and demand" for bribes affects resource use by an economy, and the reinvestment of resource rents in other assets. This requires adjusting the World Bank's measure adjusted net savings for any rent dissipation due to corruption. The impacts of corruption on long-run changes and periodic growth in the adjusted net savings rate are estimated across African and Asian economies from 1970 to 2003. Corruption rather than resource dependency per se affects negatively the ability of African countries to reinvest resource rents in the short term, but for Asian countries, corruption is less important than point resources. Corruption influences long-run growth in adjusted net savings rates in all countries, and is also the "pathway" through which this growth is affected by patterns of resource use, trade and abundance.

Keywords: Adjusted net savings, Asia, Corruption, Resource curse, Sub-Saharan Africa

JEL Classification: Q01, O13

Suggested Citation

Barbier, Edward B., Corruption and the Political Economy of Resource-Based Development: A Comparison of Asia and Sub-Saharan Africa (2010). Environmental and Resource Economics, Vol. 46, No. 4, pp. 511-537, 2010. Available at SSRN: https://ssrn.com/abstract=1762709

Edward B. Barbier (Contact Author)

Colorado State University, Fort Collins - Department of Economics ( email )

Fort Collins, CO 80523-1771
United States

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