The Local Economic Impacts of Resource Abundance : What Have We Learned?

What are the socioeconomic impacts of resource abundance? Are these effects different at the national and local levels? How could resource booms benefit (or harm) local communities? This paper reviews a vast literature examining these questions, with an emphasis on empirical works. First, the evidence and theoretical arguments behind the so-called resource curse, and other impacts at the country level, are reviewed. This cross-country literature highlights the importance of institutions. Then, a simple analytical framework is developed to understand how resource booms could impact local communities, and the available empirical evidence is examined. This emerging literature exploits within-country variation and is opening new ways to think about the relation between natural resources and economic development. The main message is that others factors, such as market mechanisms and local spillovers, are also relevant for understanding the impact of resource abundance. Finally, the paper discusses issues related to fiscal decentralization and provides ideas for future research.

Bibliographic Details

Main Authors:	Aragona, Fernando M., Chuhan-Pole, Punam, Land, Bryan Christopher
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2015-05
Subjects:	MONETARY POLICY, ENVIRONMENTAL QUALITY, INTERGENERATIONAL EQUITY, ECONOMIC GROWTH, TECHNOLOGICAL PROGRESS, PRODUCTION, ENVIRONMENTAL PROTECTION, MULTIPLIERS, AIR QUALITY, PERVERSE INCENTIVES, CARBON, INCOME, ECONOMIC WELFARE, AGRICULTURAL PRODUCTION, NITROGEN OXIDES, PRODUCERS, PROPERTY RIGHTS, HEAVY METALS, MACROECONOMIC POLICY, LABOR FORCE, LIQUIDITY, EXPORTS, EMISSIONS, POLITICAL ECONOMY, REVENUES, WELFARE, ENVIRONMENTAL REGULATIONS, ECONOMIC EFFECTS, INCENTIVES, EQUILIBRIUM, VARIABLES, TAX SYSTEMS, MODELS, EMPIRICAL STUDIES, REAL INCOME, INPUTS, REAL WAGES, RETURNS TO SCALE, WEALTH, INPUT PRICES, AGRICULTURAL OUTPUT, DEVELOPED COUNTRIES, SOCIOECONOMIC IMPACTS, INCREASING RETURNS TO SCALE, EMPIRICAL ANALYSIS, ECONOMIC ACTIVITY, DEVELOPMENT, OIL PRICES, COSTS, VOTERS, OIL, AIR POLLUTION, CROWDING OUT, DEVELOPMENT ECONOMICS, WELFARE EFFECTS, POPULATION GROWTH, CORPORATE INCOME TAXES, RENT, CAPITAL FORMATION, FIXED COSTS, EXCHANGE RATES, PRODUCTIVITY, OPTIONS, LABOR PRODUCTIVITY, EXTERNALITIES, INDUSTRIALIZATION, INCREASING RETURNS, DEMOCRATIC INSTITUTIONS, MARKET MECHANISM, DEBT, MARKETS, POLLUTION, ECONOMIC POLICIES, ENVIRONMENTAL ECONOMICS, NATURAL RESOURCES, GROSS DOMESTIC PRODUCT, METALS, EFFICIENCY, FISHING, FOOD PRODUCTION, TAXES, CANCER, LAND USE, RESOURCES, UNEMPLOYMENT, EQUITY, PRODUCTIVITY GROWTH, HUMAN CAPITAL, OPPORTUNITY COST, ECONOMIC IMPACT, ECONOMIC PERFORMANCE, CAPITAL, WAGES, COMPLIANCE COSTS, VALUE, POLICY MAKERS, AIR POLLUTION CONTROL, ENVIRONMENTAL IMPACTS, PURCHASING POWER, COMPARATIVE ADVANTAGES, DEMAND, MINES, AGGREGATE DEMAND, PUBLIC EXPENDITURES, ECONOMY, ENVIRONMENTS, EXPENDITURES, PROPERTY, CORPORATE TAXES, GROWTH MODELS, MEASUREMENT, ENVIRONMENT, SOIL DEGRADATION, ECONOMICS, ECONOMIC MODELS, TERMS OF TRADE, TAX REVENUE, SIDE EFFECTS, ECONOMIC DEVELOPMENT, TRADE, GDP, GOODS, LAND, ECONOMIES OF SCALE, INVESTMENT, COMPARATIVE ADVANTAGE, POSITIVE EXTERNALITIES, COAL, WATER POLLUTION, DECENTRALIZATION, REVENUE, POLLUTION CONTROL, OVERVALUATION, EMPIRICAL EVIDENCE, LIVING CONDITIONS, ECONOMISTS, PRICE INDEXES, PROFITS, ENVIRONMENTAL, ACID RAIN, LABOR MARKETS, OUTCOMES, OPEN ECONOMIES, PUBLIC GOOD, PRICES, NEGATIVE EXTERNALITIES, BENEFITS, ECONOMIES, DEVELOPMENT POLICY, PUBLIC GOODS, FUTURE RESEARCH,
Online Access:	http://documents.worldbank.org/curated/en/2015/05/24472144/local-economic-impacts-resource-abundance-learned http://hdl.handle.net/10986/21995
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