Resource Booms, Revenue Sharing, and Growth

<div> Using a natural experiment in Indonesia, we estimate the separate economic effects of natural resource booms and shared resource revenue.&nbsp;<span>Contrary to Dutch disease concerns, oil and gas booms promote manufacturing growth, and shared revenue does not harm local manufacturing firms.&nbsp;</span><span>Shared revenue significantly raises local non-oil GDP, but resource booms do not.&nbsp;</span><span>Supply-side factors help explain the results: shared revenue increases local population and firm entry, while resource booms do not.&nbsp;</span><span>Oil and gas booms thus benefit local economies largely through shared revenue.&nbsp;</span><span>Where the revenue is spent matters more for local growth than where the resources are extracted.</span> </div>