The Natural Resource Curse and Fiscal Decentralization

Fidel Perez-Sebastian, Ohad Raveh

Research output: Contribution to journalArticlepeer-review

Abstract

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.

Original languageAmerican English
Pages (from-to)212-230
Number of pages19
JournalAmerican Journal of Agricultural Economics
Volume98
Issue number1
DOIs
StatePublished - 1 Jan 2016

Keywords

  • Natural resources
  • economic growth
  • fiscal decentralization

All Science Journal Classification (ASJC) codes

  • Agricultural and Biological Sciences (miscellaneous)
  • Economics and Econometrics

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