Does Mother Nature Corrupt? Natural Resources, Corruption, and Economic Growth

Does Mother Nature Corrupt? Natural Resources, Corruption, and Economic Growth
Author :
Publisher : International Monetary Fund
Total Pages : 35
Release :
ISBN-10 : 9781451850734
ISBN-13 : 1451850735
Rating : 4/5 (34 Downloads)

Book Synopsis Does Mother Nature Corrupt? Natural Resources, Corruption, and Economic Growth by : Mr.Carlos Leite

Download or read book Does Mother Nature Corrupt? Natural Resources, Corruption, and Economic Growth written by Mr.Carlos Leite and published by International Monetary Fund. This book was released on 1999-07-01 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper argues that natural resource abundance creates opportunities for rent-seeking behavior and is an important factor in determining a country’s level of corruption. In a simple growth model, we illustrate the interrelationships between natural resources, corruption, and economic growth, and discuss potential anti-corruption policies. We show that the extent of corruption depends on natural resource abundance, government policies, and the concentration of bureaucratic power. Furthermore, the growth effects of natural resource discoveries and anticorruption policies crucially depend on the economy’s state of development. We empirically corroborate the model’s implications in a cross-country framework with both corruption and growth endogenized.


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