Publication Date:
2015-12-13
Description:
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.
Keywords:
H77 - Intergovernmental Relations
;
Federalism
;
Secession, O13 - Agriculture
;
Natural Resources
;
Energy
;
Environment
;
Other Primary Products, O18 - Regional, Urban, and Rural Analyses, Q32 - Exhaustible Resources and Economic Development, Q33 - Resource Booms
Print ISSN:
0002-9092
Electronic ISSN:
1467-8276
Topics:
Agriculture, Forestry, Horticulture, Fishery, Domestic Science, Nutrition
,
Economics
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