Do Sufficient Institutions Alter the Relationship between Natural Resources and Economic Growth?

MPRA Paper No. 46850, posted 9. May 2013

21 Pages Posted: 25 Mar 2014

See all articles by Ayaz Zeynalov

Ayaz Zeynalov

CERGE-EI, Charles University in Prague

Date Written: May 9, 2013

Abstract

The purpose of this paper is to test whether institutional governance and its performance is a main driving force to achieve a positive relationship between natural resources and economic growth in the long run. The main objective is to ascertain what kind of institutional governance would be needed to distribute natural resource wealth in such a way so as to achieve economic stability, and what specific policies are needed to avoid the curse in resource-rich developing countries. The research makes an attempt to interpret the role of institutional governance, as reflected by the indicators, in the context of resource-rich, post-Soviet countries. The main finding is that natural resources richness does not guarantee economic growth, where sustainable economic growth can be guaranteed, only if the resource-rich country has good institutional governance.

Keywords: economic growth, natural resources, institutional governance, post-Soviet countries

JEL Classification: O11, O43, O53, Q32

Suggested Citation

Zeynalov, Ayaz, Do Sufficient Institutions Alter the Relationship between Natural Resources and Economic Growth? (May 9, 2013). MPRA Paper No. 46850, posted 9. May 2013. Available at SSRN: https://ssrn.com/abstract=2413867 or http://dx.doi.org/10.2139/ssrn.2413867

Ayaz Zeynalov (Contact Author)

CERGE-EI, Charles University in Prague ( email )

Politichych veznu 7
Prague, 111 21
Czech Republic

HOME PAGE: http://www.cerge-ei.cz

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