Does the Political Resource Curse Affect Public Finance? The Vulnerability of Tax Revenue in Resource‐Dependent Countries

Haldenwang, Christian von; Ivanyna, Maksym

doi:10.1002/jid.3346

Cited by 20 publications

(9 citation statements)

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“…Furthermore, some of the recent studies (e.g. Bhattacharyya & Hodler, ; Collier & Hoeffler, ; Mehlum, Moene, & Torvik, ; von Haldenwang & Ivanyna, ) have noted that the resource curse hypothesis is applicable only to countries with inefficient institutions and high level of corruption. With these viewpoints, we attempt to test the following hypotheses:Hypothesis Natural resource abundance helps improve economic growth.Hypothesis Natural resource abundance is a curse for economic growth.…”

Section: Hypotheses and Literature Reviewmentioning

confidence: 99%

Corruption and Economic Growth: Some New Empirical Evidence from a Global Sample

Sharma

Mitra

2019

J of Intl Development

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This paper assesses the impact of corruption control and regulation quality on growth across countries over the period 1996 through 2015. After dealing with the possible endogeneity problem through the dynamic panel data models, our findings are suggestive of the positive effects of corruption control. Thus, our analysis tends to support the ‘sand the wheels' view at the aggregate level as well as for lower and lower–middle‐income countries. Similar results are also obtained for regulation quality. However, contrary to the theoretical arguments, the joint effect of regulation and corruption does not seem to be significant empirically for countries from any of the income groups. Evidence is also indicative of a positive effect on trade across countries from all income groups. Although our results failed to support the natural resource curse hypothesis, countries with efficient institutions and low level of corruption are not seen to experience any resource curse. Finally, policy implications of these findings are brought out. © 2019 John Wiley & Sons, Ltd.

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Section: Hypotheses and Literature Reviewmentioning

confidence: 99%

Corruption and Economic Growth: Some New Empirical Evidence from a Global Sample

Sharma

Mitra

2019

J of Intl Development

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“…These conclusions fit with broader work by Blattman, Hwang, and Williamson (), who use data from an earlier historical period to demonstrate that countries specializing in price‐volatile commodities receive less foreign investment and experience slower rates of economic growth. Recent papers by von Haldenwang and Ivanyna () and van der Ploeg and Poelhekke () continue to support this connection between natural resource abundance and both revenue vulnerability and economic volatility.…”

Section: Volatility and The Role Of Public Finance In The Resource Cursementioning

confidence: 93%

When Do Natural Resources Harm Fiscal Health? Evidence from the United States

Carr

Fails

2018

Politics & Policy

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Do natural resources have harmful economic consequences? This ques-tion is central to the interdisciplinary "resource curse" literature, but important questions remain unanswered. At the same time, the discovery of new resource deposits around the world and technological developments that enable greater resource extraction make understanding the dynamics of the resource curse even more pressing. This article addresses these issues by focusing on the relationship between resource abundance and fiscal outcomes, which we argue more accurately reflects the causal mechanisms emphasized in existing research than aggregate economic outcomes like increases in gross domestic product per capita. We describe a variety of hypotheses linking resource abundance to fiscal health, including how political and institutional factors can either mitigate or exacerbate the effect of resource wealth, and test these arguments using state-level data from the United States encompassing the years 1992-2014. This focus on subnational variation helps minimize some of the limitations of the cross-country comparisons that have dominated the prior literature. Our regression results suggest that, contrary to the most pessimistic theories, resource wealth is often associated with stronger fiscal performance at the state level. However, a number of factors, including levels of political polarization, legislative term limits, and lower wage growth, negate these benefits.Pocos temas en la economía política comparada han atraído tanta atención como la forma en que la riqueza de los recursos naturales da forma a los resultados políticos y económicos. Este documento aporta varias innovaciones a esta literatura. En primer lugar, reenfocamos el debate fuera del énfasis en los resultados económicos agregados, como el aumento del PIB per cápita, hacia la salud fiscal de los gobiernos. En segundo lugar, esbozamos una serie de argumentos teóricos que enfatizan los factores políticos e institucionales que mitigan o exacerban el efecto de la riqueza de recursos en la salud fiscal. En tercer lugar, superamos las limitaciones tradicionales de datos entre países para evaluar estas hipótesis utilizando datos de los Estados Unidos a nivel estatal. Nuestros resultados sugieren que, contrariamente a las teorías más pesimistas, la riqueza de recursos a menudo se asocia con un desempeño fiscal más sólido a nivel estatal. Sin embargo, una serie de factores, incluidos los niveles de polarización política, pueden negar estos beneficios Palabras Clave: Economía y desarrollo, Estados Unidos, cuestiones constitucionales, instituciones políticas.

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“…Public investment is key to Indonesia's energy transition, because it sends the signals needed by the private sector for their long-term planning. While there is a positive correlation between the share of oil and coal mining, and of gas extraction, with district real per capita income [58], Indonesia's dependence on revenue from exports of its fossil energy sources makes its public finance more vulnerable to external shocks [59]. Ahmad Komarulzaman and Armida Alisjabana [60] observed that there is a persistent negative effect of the mining sector on regional economic growth.…”

Section: Public Finance and The Resource Cursementioning

confidence: 99%

The Learning Activation Approach—Understanding Indonesia’s Energy Transition by Teaching It

Prakoso²

2021

Energies

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Indonesia is an interesting case study for researchers, educators and students of sustainable development and sustainable energy due to its ability to connect the multiple “worlds” it has become part of. Indonesia is an important bridge to Muslim countries, the voice of the Global South in the G20 and a main pillar of the 134-country-strong G77. Indonesia’s development trajectory is also key to the achievement of the Paris Climate Agreement as well as of the 2030 Agenda. This article proposes that one way to understand Indonesia’s complex energy transition is by knowing how to teach it as a case study. By teaching how Indonesia addresses contradictions that would have been unsurmountable for other countries, new insights and values can be gained. Indonesia’s energy transition offers helpful lessons, because of its aspiration to become a developed country by 2045. However, as the methodology of this paper suggests, these lessons can be more valuable when they are achieved through the stages of reflection, interaction and action. By knowing how to teach Indonesia’s energy transition, the value of knowledge can be multiplied. This article begins by showing how Indonesia addresses barriers and caveats by focusing on silver linings and comes up with pragmatic solutions to energy-related issues. This is followed by the “teaching guide,” which provides recommendations as to how the lessons from Indonesia can be embedded into a learning experience. The “learning activation approach” is introduced, which encourages students to systematically reflect on the complexity of selected contexts and understand this complexity by looking at the technical issues and processes that allow decision making.

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Does the Political Resource Curse Affect Public Finance? The Vulnerability of Tax Revenue in Resource‐Dependent Countries

Cited by 20 publications

References 62 publications

Corruption and Economic Growth: Some New Empirical Evidence from a Global Sample

Corruption and Economic Growth: Some New Empirical Evidence from a Global Sample

When Do Natural Resources Harm Fiscal Health? Evidence from the United States

The Learning Activation Approach—Understanding Indonesia’s Energy Transition by Teaching It

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