Do natural resource revenues hinder financial development? The role of political institutions

Bhattacharyya, Sambit and Hodler, Roland (2014) Do natural resource revenues hinder financial development? The role of political institutions. World Development, 57. pp. 101-113. ISSN 0305-750X

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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.

Item Type: Article
Schools and Departments: School of Business, Management and Economics > Economics
Subjects: H Social Sciences > HB Economic theory. Demography > HB0071 Economics as a science. Relation to other subjects
Depositing User: Sambit Bhattacharyya
Date Deposited: 28 Jan 2014 08:42
Last Modified: 07 Mar 2017 20:48
URI: http://sro.sussex.ac.uk/id/eprint/47434

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