This paper examines how natural resource abundance affects economic growth, arguing that the key factor is the quality of institutions. Countries rich in natural resources can be either growth losers or winners, depending on whether their institutions are grabber-friendly or producer-friendly. Grabber-friendly institutions favor rent-seeking behavior, which can hinder growth, while producer-friendly institutions encourage productive activities, leading to higher growth. The study challenges the "resource curse" theory, which suggests that natural resources harm growth, by showing that institutions play a decisive role. The paper uses empirical data to test the hypothesis that institutions determine whether natural resources lead to growth or stagnation. It finds that resource abundance negatively affects growth in countries with poor institutions but not in those with strong institutions. This result contrasts with the views of Sachs and Warner, who argued that institutions do not significantly affect the resource curse. Theoretical analysis shows that the allocation of entrepreneurs between production and rent-seeking depends on institutional quality. In grabber-friendly institutions, entrepreneurs may shift from production to rent-seeking, reducing growth. In producer-friendly institutions, natural resources can stimulate production and growth. The study also highlights that the resource curse is more severe in countries with weak institutions, where resource abundance can lead to corruption, conflict, and poor economic outcomes. Empirical results support the theory, showing that the interaction between resource abundance and institutional quality significantly affects growth. Countries with high institutional quality can mitigate the negative effects of resource abundance. The paper also finds that the resource curse is not unique to Africa and is not solely due to systematic differences between African and non-African countries. The study concludes that institutions are crucial in determining the impact of natural resources on economic growth. Strong institutions can turn resource-rich countries into growth winners, while weak institutions can lead to the resource curse. The findings challenge the Dutch disease explanation of the resource curse and emphasize the importance of institutional quality in economic development.This paper examines how natural resource abundance affects economic growth, arguing that the key factor is the quality of institutions. Countries rich in natural resources can be either growth losers or winners, depending on whether their institutions are grabber-friendly or producer-friendly. Grabber-friendly institutions favor rent-seeking behavior, which can hinder growth, while producer-friendly institutions encourage productive activities, leading to higher growth. The study challenges the "resource curse" theory, which suggests that natural resources harm growth, by showing that institutions play a decisive role. The paper uses empirical data to test the hypothesis that institutions determine whether natural resources lead to growth or stagnation. It finds that resource abundance negatively affects growth in countries with poor institutions but not in those with strong institutions. This result contrasts with the views of Sachs and Warner, who argued that institutions do not significantly affect the resource curse. Theoretical analysis shows that the allocation of entrepreneurs between production and rent-seeking depends on institutional quality. In grabber-friendly institutions, entrepreneurs may shift from production to rent-seeking, reducing growth. In producer-friendly institutions, natural resources can stimulate production and growth. The study also highlights that the resource curse is more severe in countries with weak institutions, where resource abundance can lead to corruption, conflict, and poor economic outcomes. Empirical results support the theory, showing that the interaction between resource abundance and institutional quality significantly affects growth. Countries with high institutional quality can mitigate the negative effects of resource abundance. The paper also finds that the resource curse is not unique to Africa and is not solely due to systematic differences between African and non-African countries. The study concludes that institutions are crucial in determining the impact of natural resources on economic growth. Strong institutions can turn resource-rich countries into growth winners, while weak institutions can lead to the resource curse. The findings challenge the Dutch disease explanation of the resource curse and emphasize the importance of institutional quality in economic development.