Institutional Quality and Economic Growth

A common observation is that countries with abundant natural resources often experience slower economic growth and more corruption than countries with fewer resources. Considering the economic histories of two resource-rich African nations in the latter half of the 20th century, one with diamonds and one with oil, which statement best analyzes their divergent outcomes in relation to this observation?

Evaluating the Role of Institutions in Economic Development

Explaining Divergent Economic Paths

True or False: The primary reason Botswana experienced more successful economic growth than Nigeria in the latter half of the 20th century is that diamonds, Botswana's main export, were inherently more valuable on the global market than oil, Nigeria's main export.

Match each description of institutional quality and its economic consequence to the country it best represents for the latter half of the 20th century.

While both Botswana (diamonds) and Nigeria (oil) are rich in natural resources, Botswana's superior economic performance in the late 20th century is primarily explained by its stronger __________, which fostered better management of resource revenues and lower levels of corruption.

Designing an Institutional Framework for a Resource-Rich Nation

Arrange the following statements into a logical causal sequence that explains the different economic outcomes of two resource-rich nations in the 20th century, one of which succeeded and one of which struggled.

Predicting Economic Outcomes Based on Institutional Quality