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

journal contribution
posted on 2023-06-08, 16:38 authored by Sambit BhattacharyyaSambit Bhattacharyya, Roland Hodler
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.

History

Publication status

  • Published

File Version

  • Published version

Journal

World Development

ISSN

0305-750X

Publisher

Elsevier

Volume

57

Page range

101-113

Department affiliated with

  • Economics Publications

Full text available

  • No

Peer reviewed?

  • Yes

Legacy Posted Date

2014-01-28

First Compliant Deposit (FCD) Date

2014-01-28

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