Poverty and the resource curse: Evidence from a global panel of countries

This paper contributes to the literature in an attempt to shed further light on the mixed evidence about the link between poverty and the abundance of natural resources, i.e. the resource curse hypothesis effect. It makes use of a large country sample, the Headcount Poverty Index, and a number of panel data methodological approaches, spanning the period 1992-2014. The findings document that fossil energy resources exacerbate poverty, while both democracy and economic freedom alleviate it, with corruption increasing it. These results highlight the need these economies to reinvestment their energy revenues in social programmes.