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- W1163156137 abstract "Is there a resource curse? We apply a new tool, the method of synthetic controls, to test old claims, that large oil endowments retard democratization and economic growth. To directly estimate the impact of resource wealth, we take advantage of the 1973 opec oil embargo, which caused a massive price spike that transformed previously marginal oil-producing countries into resource-reliant states. By estimating the counterfactual experiences of those countries, we find that there is little evidence of either a political or an economic resource curse. Nevertheless, resource wealth does affect policy outcomes. Leaders use resource wealth to pursue their policy preferences with greater vigor, a finding consistent with a theory of policy substitution that predicts greater variance in the choices of resourcerich regimes. Because resource wealth affords leaders greater policy autonomy, we conclude that resource wealth is not a curse but an amplifier. Word Count: 8,471 words" @default.
- W1163156137 created "2016-06-24" @default.
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- W1163156137 date "2012-01-01" @default.
- W1163156137 modified "2023-09-23" @default.
- W1163156137 title "Resource Wealth is an Amplifier, Not a Curse: Evidence from Country-Level Effects of Exogenous Variation in Resource Endowments" @default.
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