Debt overhang and natural resources : revisiting the resource curse hypothesis

摘要: Growth literature presents evidence that resource abundant economies comparatively grow less than other economies, giving rise to the ‘Resource Curse Hypothesis’. Many researchers have developed several theories explain Curse’ but there are very few explicit considerations of ‘Debt Overhang’ in these explanations. This study concentrates on ‘Debt Overhang –Resource link given significant relationships between debt sustainability and other spending. It also implicitly seeks test key competing theories. The contribution is evaluation ‘Resource Curse’ Overhang’ phenomena simultaneously using mixed methods analysis. This thesis consist three complementary empirical studies organised chapters under ‘Debt Overhang-Resource theme: A Panel Data Analysis Debt Overhang, Natural Resources and Growth 153 countries from 1970 2011; Time Series Sierra Leone’s Overhang, Natural Resource Experience 2011 Perceptions Documentary Analysis Leone. In Chapter Three, hypothesis was tested by estimating a system of simultaneous equations Generalised Method Moments Three - Staged Least Squares estimator for whole panel carefully defined subsets. results confirmed Overhang –Resource case least developed countries, mineral rich and petroleum although it failed excel when examined. The also Four, a Structural Vector Autoregressive Model estimated Leone : rich, heavily indebted poor country at bottom Human Development Index, has recently received large economic growth projections. were further cointegration and Granger causality tests. The investigation continued with perceptions documentary analysis Five. It investigated whether Leoneans provide support –Resource Curse structural equation model Partial Squares, utilising data collected during survey mining communities. estimations triangulated with findings interviews, observations analysis. provided for the as well some within debate. This assessment impact both overhang natural resources growth went beyond quantitative investigations proof link shared elements. also made rationale ‘case-by-case’ economic development phenomena, resulting policy recommendations greater degree alignment.