Abstract

This chapter is committed to unfolding the relationship between resource dependence and human development. The historical and current situation of countries and inequalities among regions are unveiled through an overview of the patterns of human development. A recent dataset combining the original Human Development Index components with a new formula generated by Gidwitz et al. (Understanding Performance in Human Development: A Cross-National Study. UNDP Human Development Research Paper 2010/42, 2010) is utilized. The analysis demonstrates that dependence on agricultural raw materials is associated with significant deterioration in human development, while the impact of extractive resource exports, such as energy and minerals, remains limited depending on the model specifications. Type of political regime, quality of governance, and legal origin are among the transmission channels.

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