The Resource Curse - A Natural Experiment

A.F. Zenthöfer

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Abstract

This paper compares Mauritius and Trinidad and Tobago which have a very similar climate, history, institutional framework, ethnic composition, size, etc., but are different in the natural resources they possess. Trinidad and Tobago has achieved a higher per capita GDP based on its petrodollars, but Mauritius has achieved a more robust and stable growth path and a diversified economy based on an export-oriented economic strategy. Trinidad and Tobago is highly dependent on the world market prices for oil and gas and engages in a smaller variety of economic activities, giving it a worse perspective for its future economic development. It appears that this curse is mainly working through Dutch disease effects.
Original languageEnglish
Place of PublicationTilburg
PublisherEconomics
Volume2011-028
Publication statusPublished - 2011

Publication series

NameCentER Discussion Paper
Volume2011-028

Keywords

  • Resource Curse
  • Dutch Disease
  • Natural Experiment
  • Mauritius
  • Trinidad and Tobago

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