Do Natural Resource Revenues Hinder Financial Development? The Role of Political Institutions
Journal
World Development
ISSN
0305-750X
ISSN-Digital
1873-5991
Type
journal article
Date Issued
2014-05-01
Author(s)
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.
Language
English
Keywords
natural resources
political institutions
financial development
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Elsevier Science
Publisher place
Amsterdam
Volume
57
Number
1
Start page
101
End page
113
Pages
13
Subject(s)
Eprints ID
235014