An investigation of the resource curse in Indonesia

dc.contributor.authorHilmawan R
dc.contributor.authorClark J
dc.date.accessioned2019-11-12T02:04:56Z
dc.date.available2019-11-12T02:04:56Z
dc.date.issued2019en
dc.date.updated2019-09-10T03:27:37Z
dc.description.abstractWe 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 resouce 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.en
dc.identifier.citationHilmawan R, Clark J (2019). An investigation of the resource curse in Indonesia. Resources Policy. 64. 101483-101483.en
dc.identifier.doihttps://doi.org/10.1016/j.resourpol.2019.101483
dc.identifier.issn0301-4207
dc.identifier.urihttp://hdl.handle.net/10092/17612
dc.languageEnglish
dc.language.isoen
dc.publisherElsevier BVen
dc.subjectresource dependenceen
dc.subjectresource abundanceen
dc.subjectminingen
dc.subjectoilen
dc.subjectgasen
dc.subjectcoalen
dc.subjecteconomic growthen
dc.subjectdecentralizationen
dc.subject.anzsrcFields of Research::38 - Economics::3801 - Applied economics::380105 - Environment and resource economicsen
dc.subject.anzsrcField of Research::14 - Economics::1402 - Applied Economics::140202 - Economic Development and Growthen
dc.titleAn investigation of the resource curse in Indonesiaen
dc.typeJournal Articleen
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