Explanations for Zambia's economic decline
Date
2006
Authors
du Plessis S.
Journal Title
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Volume Title
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Abstract
Zambian growth failure is often related to the resource curse. This article evaluates not only this claim, but also whether the new institutional theory can account for Zambia's economic decline. Little empirical support is found for the terms of trade or volatility versions of the resource curse theory, and there is only slightly more support for relative price versions of the theory. Turning to the new institutional theory, the article quantifies the poor quality of institutions in Zambia using a measure for contract intensive money, and supports the hypothesis that 'poor quality' institutions, and especially the failure to protect property and contract rights, played an important role in Zambia's economic decline. Examples are given to support this claim.
Description
Keywords
development economics, development failure, development theory, economic theory, Africa, Southern Africa, Sub-Saharan Africa, Zambia
Citation
Development Southern Africa
23
3
23
3