Many resource-driven economies (RDE) of low- and middle-income countries are in captivity the “resource curse”, which is usually associated with presence country natural reserves metals, minerals, oil, gas. For several decades, macroeconomic institutional theories have differently explained why resource dependence most leads to weak economic growth poverty. Numerous hypotheses econometric studi...

In the context of recent oil prices fall and resulting budgetary problems faced by KSA, it is very interesting to examine the country’s overdependence on oil revenues. In this paper, we examine whether extreme oil dependence for Saudi Arabia is the symptom of Dutch Disease. We first provide a brief review of the literature on Dutch Disease and the natural resource curse. We then discuss the sym...

Oil and natural gas are highly valuable natural resources, but many countries with large untapped reserves suffer from poor economic and social-welfare performance. This conundrum is known as the resource curse. The resource curse is a result of poor governance and wealth distribution structures that allow the elite to monopolize resources for self-gain. When rival social groups compete for nat...

The volatility of oil prices has increased visibly in the last decade. Undoubtedly, occurrence affects economics exporting and importing differently. Increases positively affect economic indicators economies, while decreases have negative effects. In this regard, increases attracted researchers’ attention, a vast literature is found investigating both countries as well advanced emerging market ...

This paper investigates the impact of sectoral foreign direct investment (FDI) on economic growth by validating resource curse hypothesis in Gulf Cooperation Council (GCC) countries. Applying OLS (Fixed and Random effects), Instrumental Variables (IV) Limited Information Maximum Likelihood (LIML) estimations, empirical results indicate that resource-FDI inflows hinder GCC economies, while non-r...

This paper considers the proposal that each country distribute its resource rents directly to citizens as a universal and unconditional cash transfer, or Resource Dividend, and estimates its potential impact on global poverty. Using a global dataset on resource rents and the distribution of income, I find that if every developing country implemented the policy then the number of people living b...

We examine the relationship between resource abundance and several indicators of human welfare. Consistent with the existing literature on the relationship between resource abundance and economic growth, we find that resource-abundant countries tend to suffer low levels of human development. While we find no support for a direct link between resources and welfare, there is an indirect link that...