Title: Extending the concept of the resource curse: natural resources and public spending on health
Authors: Cockx, Lara ×
Francken, Nathalie #
Issue Date: 2014
Publisher: Elsevier
Series Title: Ecological Economics vol:108 pages:136-149
Abstract: This paper extends the concept of the resource curse by studyingwhether and throughwhich transmission channels
natural resource wealth affects social spending. Even though the availability of vast natural capital reserves
has commonly been linked to the neglect of human development, most of the literature has continued to focus on economic performance. This paper is the first to empirically investigate the link between natural resource wealth and public health expenditures in light of the hypothesis that resource wealth as a source of unearned state income enhances state autonomy and increases volatility, which leads to policies that fail to prioritize human development. Using a large panel dataset of world countries covering the period from 1995 to 2009, we find a
robust, significant inverse relationship between natural resource dependence, and even abundance, and public
health spending over time. The effect remains significant after controlling for state autonomy, volatility, and
other factors. These findings have implications for national authorities aswell as the extractive industry. Governments should be made accountable for natural resource wealth and correct taxation could provide additional resources,earmarked for health. The extractive industry could increase their investments in sustainable Corporate
Social Responsibility operations, specifically in the health sector.
ISSN: 0921-8009
Publication status: published
KU Leuven publication type: IT
Appears in Collections:LICOS - Centre for Institutions and Economic Performance, Leuven
Department of Economics, Leuven - miscellaneous
× corresponding author
# (joint) last author

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