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This study proposes a new mechanism for the resource curse: crowding-out of innovation due to the existence of an … increase in resources decreases innovation in the formal sector, both income and welfare still go up. Meanwhile, for …
Persistent link: https://www.econbiz.de/10010833923
A government bargains a mutually convenient agreement with a multinational corporation to extract a natural resource. The corporation bears the initial investment and earns as a return a share on the profits. The host country provides access and guarantee conditions of operation. Being the...
Persistent link: https://www.econbiz.de/10008489589