01935cas a2200253 a 4500 AALejournalIMF017669 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484310144 1018-5941 BD-DhAAL BD-DhAAL Mlachila, Montfort. Financial Resource Curse in Resource-Rich Countries / Montfort Mlachila, Rasmane Ouedraogo. Washington, D.C. : International Monetary Fund, 2017. 1 online resource (29 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Why do commodity-dependent developing countries have typically lower levels of financial development than their peers? The literature has proposed many possible explanations, but it typically does not dwell on the deep mechanisms that drive such an outcome. In this paper, we argue that the main cause is the shocks in commodity prices. We test the hypothesis on 68 commodity-rich developing countries between 1980 and 2014, and we find strong evidence of the financial development resource curse through the channel of commodity price shocks, after controlling for other explanations found in the literature. The findings are robust to the different types of commodities, the nature of the shocks, and various indicators of financial development. We also show how the impact of these shocks can be mitigated through good quality of governance. Mode of access: Internet Ouedraogo, Rasmane. IMF Working Papers; Working Paper ; No. 2017/163 Full text available on IMF http://elibrary.imf.org/view/journals/001/2017/163/001.2017.issue-163-en.xml IMF e-Library