Do Natural Resource Revenues Hinder Financial Development? The Role of Political Institutions

Item Type Journal paper
Abstract We hypothesize that natural resource revenues may deteriorate contract enforcement if political institutions are weak. As poor contract enforcement leads to low financial development, resource revenues may hinder financial development in countries with poor political institutions, but not in countries with comparatively better political institutions. We provide empirical support for this hypothesis based on within-country variation in our sample covering the period 1970-2005 and 133 countries. Our results are robust to the use of additional control variables, different samples, and alternative measures of financial development and political institutions.
Authors Bhattacharyya, Sambit & Hodler, Roland
Journal or Publication Title World Development
Language English
Keywords natural resources; political institutions; financial development
Subjects economics
HSG Classification contribution to scientific community
Refereed Yes
Date 1 May 2014
Publisher Elsevier Science
Place of Publication Amsterdam
Volume 57
Number 1
Page Range 101-113
Number of Pages 13
ISSN 0305-750X
ISSN-Digital 1873-5991
Publisher DOI
Depositing User Prof. Dr. Roland Hodler
Date Deposited 24 Sep 2014 08:06
Last Modified 28 Mar 2023 00:23


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Bhattacharyya, Sambit & Hodler, Roland (2014) Do Natural Resource Revenues Hinder Financial Development? The Role of Political Institutions. World Development, 57 (1). 101-113. ISSN 0305-750X

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