Ideology and the Role of Natural Resources in Bolivia. Issue 3 (3rd July 2019)

• Record Type: Journal Article
• Authors: Montero Kuscevic, Casto Martín
• Is Part Of: Journal of economic issues. Volume 53:Issue 3(2019)
• Page Start: 799
• Page End: 812
• Publication Date: 2019-07-03
• Subjects: economic growth -- property rights -- natural resources -- political ideology; P16 -- Q0 -- O13; Economics -- Periodicals; Economics; Économie politique -- Périodiques; Economie; ECONOMICS; ECONOMIC POLICY; Periodicals; 330.05
• DOI: 10.1080/00213624.2019.1644929
• Languages: English
• ISSNs: 0021-3624

Abstract

Abstract: The growth literature has identified four channels of transmission by which the abundance of natural resources can negatively affect economic growth. In this article, I suggest ideology as a fifth transmission channel. To test this hypothesis, I exploit the geography of Bolivia whose western regions have natural resources that differ considerably from its eastern regions. I find that regions with predominantly extractive natural resources tend to choose redistributive and interventionist rather than laissez-faire policies. Additionally, I identify two effects on growth depending upon the type of natural resource that a region possesses in abundance.