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The Artifact of the Curse of Natural Resources

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This paper reexamines the validity of the natural resource curse hypothesis, using the database of mineral exporting countries. Our findings are as follows: (i) Resource-rich countries (RRCs) do not necessarily exhibit poor political, economic and social performance; (ii) RRCs that perform poorly have a low diversified exports portfolio; (iii) In contrast, RRCs with a low diversified exports portfolio do not necessarily perform poorly. Then, we develop a model of strategic interaction from a Bayesian game setup to study the role of leadership and governance in the management of natural resources. We show that an improvement in the leadership-governance binomial helps to discipline the behavior of lobby groups and generate a Pareto improvement in the management of natural resources. Evidence from the World Bank Group‟s CPIA data confirms the later finding. Our results remain valid after some robustness checks

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Matata Ponyo Mapon et Jean-Paul K. Tsasa

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