Why do some resource-abundant countries succeed while others do not?

Publisert i

Oxford Review of Economic Policy 25 (2), 2009, pages 241-256


On average, resource-abundant countries have experienced lower growth over the last four decades than their resource-poor counterparts. But the most interesting aspect of the paradox of plenty is not the average effect of natural resources, but its variation. For every Nigeria or Venezuela there is a Norway or a Botswana. Why do natural resources induce prosperity in some countries but stagnation in others? This paper gives an overview of the dimensions along which resource-abundant winners and losers differ. In light of this, it then discusses different theory models of the resource curse, with a particular emphasis on recent developments in political economy.


By Ragnar Torvik
Published June 23, 2011 2:44 PM - Last modified June 23, 2011 2:55 PM