Boon or bane: Examining divergent development outcomes among oil- and mineral-dependent countries in the Global South

Abstract

Under neoliberal conditions that privilege foreign investors and call for the retreat of the state, some oil- and mineral-dependent countries in the Global South outperform others. To investigate what accounts for this variation in economic development among these countries, this study tests hypotheses derived from resource curse and dependency/world systems literatures using a dataset of 36 oil- and mineral-dependent countries in the Global South from 1984 through 2010 and panel methods of data analysis. The results show that state capacity and debt dependence shape uneven development outcomes among these countries. The implications for resource curse and dependency/world systems theories are discussed.

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