{
  "title": "Financial Resource Curse in Resource-Rich Countries",
  "publication": "IMF Working Papers, July 19, 2017",
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  "summary": "Why do commodity-dependent developing countries have typically lower levels of financial development than their peers? The literature has proposed many possible explanations, but it typically does not dwell on the deep mechanisms that drive such an outcome.",
  "sections": [
    {
      "heading": "Summary and main finding",
      "content": "- Research question: Why do commodity-dependent developing countries have typically lower levels of financial development than their peers?\n- Core argument: The main cause is shocks in commodity prices.\n- Principal result: Strong evidence of a \"financial development resource curse\" operating through the channel of commodity price shocks, after controlling for other explanations found in the literature.\n- Mitigation channel: The impact of these shocks can be mitigated through good quality of governance."
    },
    {
      "heading": "Methodology and data",
      "content": "- Sample: 68 commodity-rich developing countries.\n- Sample period: between 1980 and 2014.\n- Empirical approach: Tests of the hypothesis controlling for other explanations proposed in the literature (specific methods and control variables are described in the paper)."
    },
    {
      "heading": "Robustness and scope",
      "content": "- Robustness checks reported:\n  - Robust to different types of commodities.\n  - Robust to the nature of the shocks.\n  - Robust across various indicators of financial development.\n- Financial development indicators referenced in subject keywords: Bank credit, Bank deposits, Financial sector development."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Main policy implication: Strengthening quality of governance can mitigate the adverse effects of commodity price shocks on financial development.\n- Policy focus areas implied by findings and keywords:\n  - Governance improvements to reduce vulnerability to commodity price shocks.\n  - Policies targeting financial sector resilience amid export concentration and price volatility.\n\n---\n\n Content in this bundle\n\n- Appendix I: Sample and Descriptive Statistics\n  - Appendix I: Sample and Descriptive Statistics (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Appendix I: Sample and Descriptive Statistics (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2017/07/19/financial-resource-curse-in-resource-rich-countries-44938"
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    "Authors: Montfort Mlachila, Rasmané Ouedraogo",
    "Published: July 19, 2017",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781484310144.001",
    "Research question: Why do commodity-dependent developing countries have typically lower levels of financial development than their peers?",
    "Core argument: The main cause is shocks in commodity prices.",
    "Principal result: Strong evidence of a \"financial development resource curse\" operating through the channel of commodity price shocks, after controlling for other explanations found in the literature.",
    "Mitigation channel: The impact of these shocks can be mitigated through good quality of governance.",
    "Sample: 68 commodity-rich developing countries.",
    "Sample period: between 1980 and 2014.",
    "Empirical approach: Tests of the hypothesis controlling for other explanations proposed in the literature (specific methods and control variables are described in the paper).",
    "Robustness checks reported:",
    "Financial development indicators referenced in subject keywords: Bank credit, Bank deposits, Financial sector development.",
    "Main policy implication: Strengthening quality of governance can mitigate the adverse effects of commodity price shocks on financial development.",
    "Policy focus areas implied by findings and keywords:",
    "**Appendix I: Sample and Descriptive Statistics**"
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