This article examines the time series properties of oil prices and economic development for 17 oil-rich developing countries. Cointegration and error-correction estimation results indicate that in the majority of cases oil booms are followed by increases in both GDP per capita and investment.

This article investigates the relationship between foreign direct investment (FDI) inflows and economic growth for a panel of 110 countries over the period 1973 to 2002. The results show that the growth effect of FDI varies by region and over time.

Recent work suggests that countries with good institutions can escape the resource curse. This article shows that in the developing countries where the curse is of primary concern, institutional quality does not seem to have much influence; instead, it appears that it is a country's policies which...