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Professor Budy Resosudarmo (Australian National University): Is it a Curse or a Blessing to Have Resource-Rich Neighbors?

開催日時

2024年5月23日(木曜)10時00分~11時15分

会場
要旨

This study focuses on investigating the spillover effects of natural gas extraction on neighbouring economies, particularly at the district level in Indonesia. For the analysis, the study applies a range of panel difference-in-differences approaches, comparing non-gas-producing districts in rich-gas provinces as the treatment group and non-gas-producing districts in scarce-gas provinces as the control group for the period before and during the gas boom, 2002-2004 and 2005-2015, respectively. This setup exploits government intervention through the Natural Resource Revenue Sharing Scheme, wherein all districts in gas-producing provinces receive amount of revenues from gas production. The results show that non-gas-producing districts in rich-gas provinces have lower Gross Domestic Product (GDP) per capita compared to those in poor-gas provinces. Gas windfall also increases the poverty rate and the number of people living below poverty line. The findings provide evidence that gas windfall is a curse rather than a blessing for the local economies near gas-extraction sites.

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