Oil, governance and the (mis)allocation of talent in developing countries

Is There a Fiscal Resource Curse? Resource Rents, Fiscal Capacity and Political Institutions

“…Moreover, existing studies do not consider a crucial aspect at the heart of our analysis: the interplay between natural resources rents and the quality of institutions. A number of papers argue, and empirically demonstrate, that institutions can mitigate or even reverse the resource curse (e.g., Melhum et al, 2006;Brunnschweiler, 2008;Boschini et al, 2007;El Anshasy and Katsaiti, 2013;Hodler, 2010, 2014;Ebeke et al, 2015;Omgba, 2015). 4 Two explanations have been put forward to understand the role of institutions: the rent-seeking model (Tornell and Lane, 1999;Torvik, 2002;Melhum et al, 2006) and the patronage model (Robinson et al, 2006;Caselli and Cunningham, 2009).…”

“…For example, underexplored areas include the effects on inequality (Carmignani, 2013, Goderis and Malone, 2011, Fum and Hodler, 2010, education (Ebeke et al, 2015, Stijns, 2006, health and living standards (Edwards, 2016, Pineda and Rodriguez, 2010, Caselli and Michaels, 2013. This paper contributes to the literature by looking at a further underexplored issue: the effects of natural resource income on state capacity and, in particular, fiscal capacity.…”

Quality of Institutions and the Allocation of Talent: Cross‐National Evidence

“…They also observed a similar phenomenon for Russian regions which exhibit significant variations in the quality of local institutions, with predictable effect for the popularity of law and public administration, on the one hand, and of engineering, on the other, among Russian students. Ebeke et al (2015) brought to an empirical test the impact of resource curse on the allocation of talent, and found that for a sample of developing countries graduation of university students in two groups of fields, resp. law, business, and social sciences; and engineering and technical sciences, is affected by resource wealth and the quality of national institutions in a manner predicted by Mehlum et al, (2006).…”

Resource&ndash;Economic Growth Nexus, Role of Governance, Financial Development, Globalisation and War: Dynamic Approach<strong> </strong>

“…The logarithmic form of real gross domestic product (LGDPC) per capita was used as a dependent variable, similar to several studies (e.g. Cavalcanti et al, 2011a & b; Apergis and Payne, 2014; Ebeke et al, 2015). Oil rent as a percentage of GDP was regarded as one of the independent variables.…”

“…The author added that developing countries with resource abundance are often incapable of efficiently transforming exhaustible resources into productive assets. This transformation requires a well-functioning financial market, but the mediating role of financial markets has not been sufficiently addressed in growth-resource literature (Sachs and Warner, 1995, 1999Brunnschweiler, 2008;Cavalcanti et al, 2011a, b;Bhattacharyya and Hodler, 2010;Ebeke et al, 2015).…”