2024/11/12 by Jamie Bologna Pavlik, Amanda Ross · 1 voice
Economics, Econometrics and Finance · Social Sciences · Computer Science · #Natural Resources and Economic Development #International Development and Aid #Economic Growth and Development
paper · doi:10.1002/soej.12742
openalex publication_date 2024/11/12 · openalex created_date 2025/10/10 · openalex updated_date 2026/05/21
Abstract The negative correlation between growth and natural resource abundance is widely studied in the resource curse literature. We add to this literature by examining the heterogeneous effect of resource rents on the obstacles faced by different sized firms. We find small firms experience more setbacks across a range of categories—including corruption—in response to positive exogenous resource shocks while large firms tend to benefit. These results are robust across a number of specifications as well as a placebo analysis where resource shocks are randomly assigned. Our findings contribute to our understanding of how resource rents exacerbate the existing difficulties faced by small firms in the developing world.