An Investigation of the Resource Curse in Indonesia (2018)
We investigate the effect of resource dependence on district level income in a rare within-country study for Indonesia, one of the largest resource producing countries in Asia. We follow 390 districts between 2006 and 2015, consider four alternative measures of resource dependence, and instrument for the potential endogeneity of each using historical measures of oil, gas and coal reserve locations, and changes in the physical production of each resource. Using annual fixed effects and first differenced regressions with and without various instruments, we find no evidence of a “resource curse”. Instead, we find robust evidence across all models that dependence as measured by mining’s share of output is positively associated with district real per capita income. We find a similar positive relationship between dependence as measured by the share of district government revenues from oil and gas or mining overall, and income in our most credible specifications with instruments. For example, a standard deviation increase in change in district government dependence on oil/gas revenues increases real per capita income by 16 percent over a nine year period.
ANZSRC Fields of Research38 - Economics::3801 - Applied economics::380105 - Environment and resource economics
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Hilmawan R; Clark J (Elsevier BV, 2019)We investigate the effect of resource dependence on district level income in a rare within-country study for Indonesia, one of the largest resource producing countries in Asia. We follow 390 districts between 2006 and ...
Clark JE; Hilmawan R (PePEc, 2018)Previous research has found that in Indonesia, a resource giant in South East Asia, resource dependence is positively associated with economic growth, contrary to a ‘resource curse’ hypothesis. We test four potential ...
Peer RAM; Chini CM (IOP Publishing, 2020)The global trade of energy allows for the distribution of the world’s collective energy resources and, therefore, an increase in energy access. However, this network of trade also generates a network of virtually traded ...