20 Dec 2016 | Publication

 Resource Abundance and Resource Dependence

 Authors: Abdul Ghafar Ismail, Khairil Anuar Ramli (2016)

 IESTC Working Paper Series: No. 2



Citation style: Abdul Ghafar Ismail and Khairil Anuar Ramli (2016) Resource Abundance and Resource Dependence. IESTC Working Paper Series, Working Paper No. 1. Bangi: Islamic Economic Studies and Thoughts Centre



Researchers acknowledge that many Muslim countries have a resource abundant economy; nonetheless, questions arise as to whether they are also resource-dependent. In certain extent that their economic performance is heavily anchored upon the performance of its extractive industries. This article aims to explore basic issues surrounding the schisms of resource abundance and dependence – its value as resource rents, its roles as a natural capital, its market price volatility and its oft-mentioned linkages with economic performances. To contextualize the issues, this research traces the brief historical milestones in the development of an oil and gas industry in Malaysia, and devours its financial and operational indicators in comparison with other resource-rich economies. It raises issues such as whether a nation should pursue a resource-led industrialization.


Keywords: resource economics, resource curse, resource abundance, resource dependence, economic development

JEL Classification: O11; O13; Q32; Q38; Q43.




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