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A Resource-Rich Neighbor Is a Misfortune: The Spatial Distribution of the Resource Curse in Brazil

Year: 2022

Type: article

Abstract: We study the spatial distribution of the effect of oil and gas revenues on Brazilian municipalities, using variations in international prices to establish causality. Those revenues increase nighttime light emissions in oil-producing municipalities but impose negative spillovers on neighboring municipalities, especially those located more than 150 kilometers from oil activities. The two effects cancel out at the level of microregions. In oil-producing municipalities, oil and gas revenues increase royalties, population, prices, crime, and real wages, particularly in manufacturing and service sectors. Spillovers are negative on wages and prices but positive on royalties and crime.

Source: Economic Development and Cultural Change

DOI: 10.1086/718554

Authors: Phoebe W. Ishak, Pierre-Guillaume Méon

Institutions: Centre National de la Recherche Scientifique, Aix-Marseille Université, Aix-Marseille Sciences Economiques, Université Libre de Bruxelles

Language: English

Topic: Natural Resources and Economic Development

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Reduced inequalities, Peace, justice, and strong institutions

Open Access status: green

OpenAlex ID: W3004935930

FWCI: 0.265

Cites: 40

Cited by: 4

Related to: 10