A cultural perspective of natural resource curse in finance

This study proposes that the heterogeneous effect of natural resources revenue (NRR) on financial development (FD) can be explained by the differences in the orientation towards individualistic culture across countries. The empirical analysis based on a panel data set of a global sample of 92 countries, suggests that NRR hinders FD in countries with a low orientation towards individualistic culture relative to those with a high orientation. The findings are useful in understanding the critical resource curse phenomenon and capitalizing on natural resource wealth.<p></p>