Publication

This paper explores how increasing refining capacities in oil-producing countries may mitigate the effects of the resource curse. The author examines the reasons behind oil-producing countries’ absence of refining capacities and argues that increasing these capacities may: 1) improve the economic outcome of these countries by enhancing linkages between oil production and other sectors of the economy, and 2) mitigate the negative institutional effect associated with oil rents and power concentration as political groups linked to the petrochemical sector increase their bargaining power vis-à-vis the government.