In another study by Arezki and van der Ploeg provide a new cross-country empirical proof for resource curse effect. They cast a research based on World Bank’s World Development Indicators and conclude that there is a strong negative relationship between natural resources and income per capita. However de jure openness—which means ‘the number of years that a country is rated open to international trade’—and de facto trade openness—which means ‘the sum of exports and imports as fraction of GDP)—all attenuate resource curse.
Guenther (2008) in his paper about Democratic Republic of Congo argue that resource curse in Sub-Saharan African countries, such as DRC, has a connection with natural resource dependence, armed conflicts and weak governance. Due to the patrimonialism and non-democratic rule on resources rent, the central government has difficulty in gaining control. And the unbalanced geographic distribution facilitates the form of resource curse. They also argue that the growing demand of hard commodities from India and China leading to the shift terms of international trade will result in attempt from both state and non-state actors to take over control on lucrative resource rent , challenging DRC’s governance and peace-building.
Hammond (2011) talk about Angola and Venezuela in his paper. He presents historical evidence that resource curse exist in Angola but does not exist in Venezuela, exploring the reasons why Venezuela successfully avoided resource curse while Angola did not. He comes up with a conclusion that there are three aspects: ‘corruption diversion of revenues, economic mismanagement and neglect of the living standards of the population’. He also draws conclusion from the Venezuela case that it is not sufficient to overcome resource curse only by sturdy economic management, further political and social reform is required in order to serve for the common interest of the population.
Huang (2013) does a case study in Xinjiang, China, based on a mathematical model generated from Statistic Yearbook of Xinjiang and National Economy & Social Development Statistic Bulletin of the Xinjiang Uygur Autonomous Region between 1996 and 2012. The result shows that there is indeed resource curse phenomenon in Xinjiang. He also comes up with a mathematical model which suggests that Xinjiang should open wider to the outside world, expand economic and technical cooperation with other regions, reinforce innovation in science and technology, and cultivate strategic emerging industries in order to crack resource curse.
Another economic term—Dutch Disease—is considered as the manifestation of resource curse. Beine, Bos and Coulombe (2012) argue that there is indeed Dutch Disease existing in Canada. They state that the denial of Dutch Disease’s existence in Canada is caused by failing to ‘disentangle the evolution of the Canadian currency from the U.S. currency’. In their research, they provide evidence that between 2002 and 2007, 33 to 39% loss of...