Abstract
The resource curse in former communist countries has been studied by scholars such as Pauline Jones Luong and Grigore Pop-Eleches. However, these works haven’t tested some interesting theories such as Blattman’s “periphery vs core” theory or “discount factor” etc. This paper analyzes the effect of the collapse of the former communist regime on natural resource dependence by comparing and contrasting Total Natural Resource Rents. Three hypotheses are tested to explore the causality relationship between the communist regime collapse and natural resource dependence: manufacturing export, privatization and ruling party’s discount factor. By analyzing the panel data including fifty-one countries from 2007-2009, the former communist countries indeed bear higher long run natural resource dependence than others do. In terms of the hypotheses verification, manufacturing export is significant with expected negative sign while the other two factors mentioned above are not. Moreover, the “resource curse theory” could not be verified by this model.
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