NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Addressing the Natural Resource Curse: An Illustration from Nigeria

Xavier Sala-i-Martin, Arvind Subramanian

NBER Working Paper No. 9804
Issued in June 2003
NBER Program(s):   EFG

Some natural resources -- oil and minerals in particular -- exert a negative and nonlinear impact on growth via their deleterious impact on institutional quality. We show this result to be very robust. The Nigerian experience provides telling confirmation of this aspect of natural resources. Waste and corruption from oil rather than Dutch disease has been responsible for its poor long run economic performance. We propose a solution for addressing this resource curse which involves directly distributing the oil revenues to the public. Even with all the difficulties of corruption and inefficiency that will no doubt plague its actual implementation, our proposal will, at the least, be vastly superior to the status quo. At best, however, it could fundamentally improve the quality of public institutions and, as a result, transform economics and politics in Nigeria.

download in pdf format
   (346 K)

email paper

This paper is available as PDF (346 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w9804

Published: Xavier Sala-i-Martin & Arvind Subramanian, 2013. "Addressing the Natural Resource Curse: An Illustration from Nigeria," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 22(4), pages 570-615, August. citation courtesy of

Users who downloaded this paper also downloaded these:
Sapienza, Zingales, and Guiso w11999 Does Culture Affect Economic Outcomes?
Angrist and Kugler w11219 Rural Windfall or a New Resource Curse? Coca, Income, and Civil Conflict in Colombia
Brollo, Nannicini, Perotti, and Tabellini w15705 The Political Resource Curse
Page The East Asian Miracle: Four Lessons for Development Policy
Gallup, Sachs, and Mellinger w6849 Geography and Economic Development
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us