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    Bank of Finland, Rauhankatu 19 B, Helsinki

In this study, we look for a financial channel between oil price volatility and the resource curse by using firm-level data. We show that a collapse in oil price leads to an adverse effect on firm borrowing in resource-dependent countries for both resource and non-resource firms. We also find evidence that the decline in leverage is to some extent attributed to the supply of credit. The results suggest that oil price volatility harms economic diversification in resource-dependent countries through a financial channel.



BOFIT seminars are held on Tuesdays at 10.30–11.30 in Rauhankatu, 3rd floor big meeting room (unless indicated otherwise). Seminars are held in English.

BOFIT seminars are open to all economists interested in the subject areas covered. Please register in advance at or by phone +358 9 183 2268 by noon of the preceding day. Visitors will be escorted from Rauhankatu 19 B (Kirjasto/Library) entrance to the seminar room 10 minutes before the seminar.