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The Economics of Resource Rich Economies
Accompanied by an original and informative introduction by the editors, this volume brings together scholarly contributions on the problems and benefits of an economy rich in natural resources. After a brief look at some historical aspects of the subject, the book explores the concept known as the ‘Dutch Disease’ and offers empirical and theoretical insights into the effects of rich natural resources on economic growth. Further topics are the political economy of natural resources, issues of conflict and natural resources and an investigation into a variety of policies and strategies for managing the revenue from natural resources.
More Information
Contributors
Contents
More Information
Accompanied by an original and informative introduction by the editors, this volume brings together scholarly contributions on the problems and benefits of an economy rich in natural resources. After a brief look at some historical aspects of the subject, the book explores the concept known as the ‘Dutch Disease’ and offers empirical and theoretical insights into the effects of rich natural resources on economic growth. Further topics are the political economy of natural resources, issues of conflict and natural resources and an investigation into a variety of policies and strategies for managing the revenue from natural resources.
Contributors
37 articles, dating from 1997 to 2013
Contributors include: K.J. Arrow, E.H. Bulte, P. Collier, A. Dixit, J.M. Hartwick, G.D. Libecap, J.P. Neary, R. Torvik, S. van Wijnbergen
Contributors include: K.J. Arrow, E.H. Bulte, P. Collier, A. Dixit, J.M. Hartwick, G.D. Libecap, J.P. Neary, R. Torvik, S. van Wijnbergen
Contents
Contents:
Acknowledgements
Introduction Frederick van der Ploeg and Anthony J. Venables
PART I NATURAL RESOURCES IN HISTORY
1. Paul A. David and Gavin Wright (1997), ‘Increasing Returns and the Genesis of American Resource Abundance’, Industrial and Corporate Change, 6 (2), March, 203–45
2. Gary D. Libecap (1978), ‘Economic Variables and the Development of the Law: The Case of Western Mineral Rights’, Journal of Economic History, 38 (2), June, 338–62
3. Christopher Blattman, Jason Hwang and Jeffrey G. Williamson (2007), ‘Winners and Losers in the Commodity Lottery: The Impact of Terms of Trade Growth and Volatility in the Periphery 1870–1939’, Journal of Development Economics, 82 (1), January, 156–79
PART II DUTCH DISEASE
4. W. Max Corden and J. Peter Neary (1982), ‘Booming Sector and De-Industrialisation in a Small Open Economy’, Economic Journal, 92 (368), December, 825–48
5. Peter Neary (1988), ‘Determinants of the Equilibrium Real Exchange Rate’, American Economic Review, 78 (1), March, 210–15
6. R.K. Eastwood and A.J. Venables (1982), ‘The Macroeconomic Implications of a Resource Discovery in an Open Economy’, Economic Journal, 92 (366), June, 285–99
7. Sweder van Wijnbergen (1984), ‘The “Dutch Disease”: A Disease After All?’, Economic Journal, 94 (373), March, 41–55
8. Frederick van der Ploeg and Anthony J. Venables (2013), ‘Absorbing a Windfall of Foreign Exchange: Dutch Disease Dynamics’, Journal of Development Economics, 103, July, 229–43
PART III RESOURCES AND ECONOMIC GROWTH
9. Jeffrey D. Sachs and Andrew M. Warner (2001), ‘The Curse of Natural Resources’, European Economic Review, 45 (4–6), May, 827–38
10. Paul Collier and Benedikt Goderis (2012), ’Commodity Prices and Growth: An Empirical Investigation’, European Economic Review, 56 (6), August, 1241–60
11. Halvor Mehlum, Karl Moene and Ragnar Torvik (2006), ‘Institutions and the Resource Curse’, Economic Journal, 116 (508), January, 1–20
12. Anne D. Boschini, Jan Pettersson and Jesper Roine (2007), ‘Resource Curse or Not: A Question of Appropriability’, Scandinavian Journal of Economics, 109 (3), September, 593–617
13. Frederick van der Ploeg and Steven Poelhekke (2009), ‘Volatility and the Natural Resource Curse’, Oxford Economic Papers, 61 (4), October, 727–60
14. Benedikt Goderis and Samuel W. Malone (2011), ‘Natural Resource Booms and Inequality: Theory and Evidence’, Scandinavian Journal of Economics, 113 (2), June, 388–417 ‘Erratum’, in Scandinavian Journal of Economics, 113 (3), September, 754
15. Pedro C. Vicente (2010), ‘Does Oil Corrupt? Evidence from a Natural Experiment in West Africa’, Journal of Development Economics, 92 (1), May, 28–38
16. Fernando M. Aragón and Juan Pablo Rud (2013), ‘Natural Resources and Local Communities: Evidence from a Peruvian Gold Mine’, American Economic Journal: Economic Policy, 5 (2), May, 1–25
PART IV POLITICAL ECONOMY OF NATURAL RESOURCES
17. Jørgen Juel Andersen and Silje Aslaksen (2008), ‘Constitutions and the Resource Curse’, Journal of Development Economics, 87 (2), October, 227–46
18. Jean-Marie Baland and Patrick Francois (2000), ‘Rent-seeking and Resource Booms’, Journal of Development Economics, 61 (2), April, 527–42
19. Erwin H. Bulte, Richard Damania and Robert T. Deacon (2005), ‘Resource Intensity, Institutions, and Development’, World Development, 33 (7), July, 1029–44
20. Roland Hodler (2006), ‘The Curse of Natural Resources in Fractionalized Countries’, European Economic Review, 50 (6), August, 1367–86
21. James A. Robinson, Ragnar Torvik and Thierry Verdier (2006), ‘Political Foundations of the Resource Curse’, Journal of Development Economics, 79 (2), April, 447–68
22. Aaron Tornell and Philip R. Lane (1999), ‘The Voracity Effect’, American Economic Review, 89 (1), March, 22–46
23. Ragnar Torvik (2002), ‘Natural Resources, Rent Seeking and Welfare’, Journal of Development Economics, 67 (2), April, 455–70
24. Francesco Caselli and Tom Cunningham (2009), ‘Leader Behaviour and the Natural Resource Curse’, Oxford Economic Papers, 61 (4), October, 628–50
PART V CONFLICT AND NATURAL RESOURCES
25. Paul Collier and Anke Hoeffler (2004), ‘Greed and Grievance in Civil War’, Oxford Economic Papers, 56 (4), October, 563–95
26. James D. Fearon (2005), ‘Primary Commodity Exports and Civil War’, Journal of Conflict Resolution, 49 (4), August, 483–507
27. Joshua D. Angrist and Adriana D. Kugler (2008), ‘Rural Windfall or a New Resource Curse? Coca, Income, and Civil Conflict in Colombia’, Review of Economics and Statistics, XC (2), May, 191–215
28. Ernesto Dal Bó and Pedro Dal Bó (2011), ‘Workers, Warriors, and Criminals: Social Conflict in General Equilibrium’, Journal of the European Economic Association, 9 (4), August, 646–77
29. Oeindrila Dube and Juan F. Vargas (2013), ‘Commodity Price Shocks and Civil Conflict: Evidence from Colombia’, Review of Economic Studies, 80 (4), October, 1384–421
30. Frederick van der Ploeg and Dominic Rohner (2012), ‘War and Natural Resource Exploitation’, European Economic Review, 56 (8), November, 1714–29
PART VI RESOURCE REVENUE MANAGEMENT
31. John M. Hartwick (1977), ‘Intergenerational Equity and the Investing of Rents from Exhaustible Resources’, American Economic Review, 67 (5), December, 972–4
32. Avinash Dixit, Peter Hammond and Michael Hoel (1980), ‘On Hartwick’s Rule for Regular Maximin Paths of Capital Accumulation and Resource Depletion’, Review of Economic Studies, XLVII (3), April, 551–6
33. Kenneth J. Arrow, Partha Dasgupta and Karl-Göran Mäler (2003), ‘The Genuine Savings Criterion and the Value of Population’, Economic Theory, 21 (2–3), March, 217–25
34. J.A Sefton and M.R. Weale (2006), ‘The Concept of Income in a General Equilibrium’, Review of Economic Studies, 73 (1), January, 219–49
35. Frederick van der Ploeg and Anthony J. Venables (2011), ‘Harnessing Windfall Revenues: Optimal Policies for Resource-Rich Developing Economies‘, Economic Journal, 121 (551), March, 1–30
36. Ton S. van den Bremer and Frederick van der Ploeg (2013), ‘Managing and Harnessing Volatile Oil Windfalls’, IMF Economic Review, 61 (1), 130–67
37. Frederick van der Ploeg (2010), ‘Voracious Transformation of a Common Natural Resource into Productive Capital’, International Economic Review, 51 (2), May, 365–81
Index
Acknowledgements
Introduction Frederick van der Ploeg and Anthony J. Venables
PART I NATURAL RESOURCES IN HISTORY
1. Paul A. David and Gavin Wright (1997), ‘Increasing Returns and the Genesis of American Resource Abundance’, Industrial and Corporate Change, 6 (2), March, 203–45
2. Gary D. Libecap (1978), ‘Economic Variables and the Development of the Law: The Case of Western Mineral Rights’, Journal of Economic History, 38 (2), June, 338–62
3. Christopher Blattman, Jason Hwang and Jeffrey G. Williamson (2007), ‘Winners and Losers in the Commodity Lottery: The Impact of Terms of Trade Growth and Volatility in the Periphery 1870–1939’, Journal of Development Economics, 82 (1), January, 156–79
PART II DUTCH DISEASE
4. W. Max Corden and J. Peter Neary (1982), ‘Booming Sector and De-Industrialisation in a Small Open Economy’, Economic Journal, 92 (368), December, 825–48
5. Peter Neary (1988), ‘Determinants of the Equilibrium Real Exchange Rate’, American Economic Review, 78 (1), March, 210–15
6. R.K. Eastwood and A.J. Venables (1982), ‘The Macroeconomic Implications of a Resource Discovery in an Open Economy’, Economic Journal, 92 (366), June, 285–99
7. Sweder van Wijnbergen (1984), ‘The “Dutch Disease”: A Disease After All?’, Economic Journal, 94 (373), March, 41–55
8. Frederick van der Ploeg and Anthony J. Venables (2013), ‘Absorbing a Windfall of Foreign Exchange: Dutch Disease Dynamics’, Journal of Development Economics, 103, July, 229–43
PART III RESOURCES AND ECONOMIC GROWTH
9. Jeffrey D. Sachs and Andrew M. Warner (2001), ‘The Curse of Natural Resources’, European Economic Review, 45 (4–6), May, 827–38
10. Paul Collier and Benedikt Goderis (2012), ’Commodity Prices and Growth: An Empirical Investigation’, European Economic Review, 56 (6), August, 1241–60
11. Halvor Mehlum, Karl Moene and Ragnar Torvik (2006), ‘Institutions and the Resource Curse’, Economic Journal, 116 (508), January, 1–20
12. Anne D. Boschini, Jan Pettersson and Jesper Roine (2007), ‘Resource Curse or Not: A Question of Appropriability’, Scandinavian Journal of Economics, 109 (3), September, 593–617
13. Frederick van der Ploeg and Steven Poelhekke (2009), ‘Volatility and the Natural Resource Curse’, Oxford Economic Papers, 61 (4), October, 727–60
14. Benedikt Goderis and Samuel W. Malone (2011), ‘Natural Resource Booms and Inequality: Theory and Evidence’, Scandinavian Journal of Economics, 113 (2), June, 388–417 ‘Erratum’, in Scandinavian Journal of Economics, 113 (3), September, 754
15. Pedro C. Vicente (2010), ‘Does Oil Corrupt? Evidence from a Natural Experiment in West Africa’, Journal of Development Economics, 92 (1), May, 28–38
16. Fernando M. Aragón and Juan Pablo Rud (2013), ‘Natural Resources and Local Communities: Evidence from a Peruvian Gold Mine’, American Economic Journal: Economic Policy, 5 (2), May, 1–25
PART IV POLITICAL ECONOMY OF NATURAL RESOURCES
17. Jørgen Juel Andersen and Silje Aslaksen (2008), ‘Constitutions and the Resource Curse’, Journal of Development Economics, 87 (2), October, 227–46
18. Jean-Marie Baland and Patrick Francois (2000), ‘Rent-seeking and Resource Booms’, Journal of Development Economics, 61 (2), April, 527–42
19. Erwin H. Bulte, Richard Damania and Robert T. Deacon (2005), ‘Resource Intensity, Institutions, and Development’, World Development, 33 (7), July, 1029–44
20. Roland Hodler (2006), ‘The Curse of Natural Resources in Fractionalized Countries’, European Economic Review, 50 (6), August, 1367–86
21. James A. Robinson, Ragnar Torvik and Thierry Verdier (2006), ‘Political Foundations of the Resource Curse’, Journal of Development Economics, 79 (2), April, 447–68
22. Aaron Tornell and Philip R. Lane (1999), ‘The Voracity Effect’, American Economic Review, 89 (1), March, 22–46
23. Ragnar Torvik (2002), ‘Natural Resources, Rent Seeking and Welfare’, Journal of Development Economics, 67 (2), April, 455–70
24. Francesco Caselli and Tom Cunningham (2009), ‘Leader Behaviour and the Natural Resource Curse’, Oxford Economic Papers, 61 (4), October, 628–50
PART V CONFLICT AND NATURAL RESOURCES
25. Paul Collier and Anke Hoeffler (2004), ‘Greed and Grievance in Civil War’, Oxford Economic Papers, 56 (4), October, 563–95
26. James D. Fearon (2005), ‘Primary Commodity Exports and Civil War’, Journal of Conflict Resolution, 49 (4), August, 483–507
27. Joshua D. Angrist and Adriana D. Kugler (2008), ‘Rural Windfall or a New Resource Curse? Coca, Income, and Civil Conflict in Colombia’, Review of Economics and Statistics, XC (2), May, 191–215
28. Ernesto Dal Bó and Pedro Dal Bó (2011), ‘Workers, Warriors, and Criminals: Social Conflict in General Equilibrium’, Journal of the European Economic Association, 9 (4), August, 646–77
29. Oeindrila Dube and Juan F. Vargas (2013), ‘Commodity Price Shocks and Civil Conflict: Evidence from Colombia’, Review of Economic Studies, 80 (4), October, 1384–421
30. Frederick van der Ploeg and Dominic Rohner (2012), ‘War and Natural Resource Exploitation’, European Economic Review, 56 (8), November, 1714–29
PART VI RESOURCE REVENUE MANAGEMENT
31. John M. Hartwick (1977), ‘Intergenerational Equity and the Investing of Rents from Exhaustible Resources’, American Economic Review, 67 (5), December, 972–4
32. Avinash Dixit, Peter Hammond and Michael Hoel (1980), ‘On Hartwick’s Rule for Regular Maximin Paths of Capital Accumulation and Resource Depletion’, Review of Economic Studies, XLVII (3), April, 551–6
33. Kenneth J. Arrow, Partha Dasgupta and Karl-Göran Mäler (2003), ‘The Genuine Savings Criterion and the Value of Population’, Economic Theory, 21 (2–3), March, 217–25
34. J.A Sefton and M.R. Weale (2006), ‘The Concept of Income in a General Equilibrium’, Review of Economic Studies, 73 (1), January, 219–49
35. Frederick van der Ploeg and Anthony J. Venables (2011), ‘Harnessing Windfall Revenues: Optimal Policies for Resource-Rich Developing Economies‘, Economic Journal, 121 (551), March, 1–30
36. Ton S. van den Bremer and Frederick van der Ploeg (2013), ‘Managing and Harnessing Volatile Oil Windfalls’, IMF Economic Review, 61 (1), 130–67
37. Frederick van der Ploeg (2010), ‘Voracious Transformation of a Common Natural Resource into Productive Capital’, International Economic Review, 51 (2), May, 365–81
Index
