The natural resource curse and fiscal decentralization

Pérez-Sebastián, Fidel; Raveh, Ohad

Abstract

© 2015 The Author. Natural resource abundance is a blessing for some countries, but a curse for others. We show that differences across countries in the degree of fiscal decentralization can contribute to this divergent outcome. Using a large panel of countries covering several decades and various fiscal decentralization and natural resource measures, we provide empirical support for the novel hypothesis. We also study a model that combines political and market mechanisms under a unified framework to illustrate how natural resource booms may create negative effects in fiscally decentralized nations.

Citation

Pérez-Sebastián, F., & Raveh, O. (2016). The natural resource curse and fiscal decentralization. American journal of agricultural economics, 98(1), 212-230. https://doi.org/10.1093/ajae/aav051

• Journal Article Type: Article
• Acceptance Date: Jul 13, 2015
• Online Publication Date: Aug 24, 2015
• Publication Date: Jan 1, 2016
• Deposit Date: Oct 27, 2015
• Publicly Available Date: Oct 27, 2015
• Journal: American journal of agricultural economics
• Print ISSN: 0002-9092
• Electronic ISSN: 1467-8276
• Publisher: Oxford University Press
• Peer Reviewed: Peer Reviewed
• Volume: 98
• Issue: 1
• Pages: 212-230
• DOI: https://doi.org/10.1093/ajae/aav051
• Keywords: Natural resources, Economic growth, Fiscal decentralization
• Public URL: https://hull-repository.worktribe.com/output/380255
• Publisher URL: http://ajae.oxfordjournals.org/content/early/2015/08/20/ajae.aav051
• Additional Information: Authors' accepted manuscript of article published in: American journal of agricultural economics, 2016, volume 98, issue 1.