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dc.contributor.authorvan der Ploeg, Fredericken_US
dc.contributor.authorPoelhekke, Stevenen_US
dc.date.accessioned2010-04-26en_US
dc.date.accessioned2010-08-18T11:18:12Z-
dc.date.available2010-08-18T11:18:12Z-
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/10419/38918-
dc.description.abstractBrunnschweiler and Bulte (2008) provide cross-country evidence that the resource curse is a 'red herring' once one corrects for endogeneity of resource exports and allows resource abundance affect growth. Their results show that resource exports are no longer significant while the value of subsoil assets has a significant positive effect on growth. But the World Bank measure of subsoil assets is proportional to current rents, and thus also endogenous. Furthermore, their results suffer from an unfortunate data mishap, omitted variables bias, weakness of the instruments, violation of exclusion restrictions and misspecification error. Correcting for these issues and instrumenting resource exports with values of proven reserves at the beginning of the sample period; there is no evidence for the resource curse either and subsoil assets are no longer significant. However, the same evidence suggests that resource exports or rents boost growth in stable countries, but also make especially already volatile countries more volatile and thus indirectly worsen growth prospects. Ignoring the volatility channel, may lead one to erroneously conclude that there is no effect of resources on growth.en_US
dc.language.isoengen_US
dc.publisherCESifo Münchenen_US
dc.relation.ispartofseriesCESifo working paper Resources and Environment 3013en_US
dc.subject.jelC12en_US
dc.subject.jelC21en_US
dc.subject.jelC82en_US
dc.subject.jelF43en_US
dc.subject.jelO11en_US
dc.subject.jelO41en_US
dc.subject.jelQ32en_US
dc.subject.ddc330en_US
dc.subject.keywordresource curseen_US
dc.subject.keywordresource exportsen_US
dc.subject.keywordresource rentsen_US
dc.subject.keywordnatural capitalen_US
dc.subject.keywordsubsoil assetsen_US
dc.subject.keywordreservesen_US
dc.subject.keywordinstrumental variablesen_US
dc.subject.keywordvolatilityen_US
dc.subject.stwRohstoffressourcenen_US
dc.subject.stwRent Seekingen_US
dc.subject.stwWirtschaftswachstumen_US
dc.subject.stwExporten_US
dc.subject.stwKausalanalyseen_US
dc.subject.stwWelten_US
dc.titleThe pungent smell of 'red herrings': Subsoil assets, rents, volatility and the resource curseen_US
dc.typeWorking Paperen_US
dc.identifier.ppn624655555en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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