Windfall gains, political economy and economic development
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Windfall gains, political economy and economic development. / Dalgaard, Carl-Johan Lars; Olsson, Ola.
I: Journal of African Economies, Bind 17, Nr. Suppl. 1, 2008, s. 72-109.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › fagfællebedømt
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TY - JOUR
T1 - Windfall gains, political economy and economic development
AU - Dalgaard, Carl-Johan Lars
AU - Olsson, Ola
N1 - JEL classification: O17, O43, P16
PY - 2008
Y1 - 2008
N2 - Natural resource rents and foreign aid have the character of windfall gains that affect economic outcomes both directly and indirectly. Several studies have shown that the indirect effect typically works via institutions like corruption. In this article, we offer a theoretical framework for a joint analysis of how natural resources and aid potentially affect total output in society through rent-seeking activities. We survey the existing evidence on both direct and indirect effects of windfalls and provide some new empirical evidence of the association between aid/natural resources and institutions in a large cross-section of countries. Our results suggest that whereas more aid means less corruption, natural resource rents is positively correlated with corruption, although both relationships are non-linear
AB - Natural resource rents and foreign aid have the character of windfall gains that affect economic outcomes both directly and indirectly. Several studies have shown that the indirect effect typically works via institutions like corruption. In this article, we offer a theoretical framework for a joint analysis of how natural resources and aid potentially affect total output in society through rent-seeking activities. We survey the existing evidence on both direct and indirect effects of windfalls and provide some new empirical evidence of the association between aid/natural resources and institutions in a large cross-section of countries. Our results suggest that whereas more aid means less corruption, natural resource rents is positively correlated with corruption, although both relationships are non-linear
U2 - doi:10.1093/jae/ejm033
DO - doi:10.1093/jae/ejm033
M3 - Journal article
VL - 17
SP - 72
EP - 109
JO - Journal of African Economies
JF - Journal of African Economies
SN - 0963-8024
IS - Suppl. 1
ER -
ID: 2939646