Resources and Incentives to Reform
Author | : Alberto Dalmazzo |
Publisher | : |
Total Pages | : 43 |
Release | : 2006 |
ISBN-10 | : OCLC:1291216841 |
ISBN-13 | : |
Rating | : 4/5 ( Downloads) |
Download or read book Resources and Incentives to Reform written by Alberto Dalmazzo and published by . This book was released on 2006 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper models the incentives for a self-interested government to implement good policies. While good policies lead to investment and growth, they reduce the government's ability to increase supporters' consumption. The model predicts that resource abundance is conductive to poor policies and, consequently, to low investment. The implications of the model are broadly supported by evidence on sub-Saharan African countries. In particular, countries that are rich in natural resources tend to have lower institutional quality and worse macroeconomic and trade policies.