Resource-rich economies thrive with strong public institutions, study finds.
The study looked at how nonrenewable resources affect economic growth from 1995 to 2010. Surprisingly, having more nonrenewable resource exports in 1996 GDP was linked to higher economic growth later on. There wasn't strong evidence of the resource curse during this time, even with other factors considered. Most economies were open and had policies that encouraged foreign investment. The study found that good public institutions, like effective government, are crucial for economic growth in resource-rich countries. So, improving public and private institutions can help resource-rich economies grow more.