The paper critically evaluates the empirical basis for the resource curse, a paradox suggesting that resource-rich countries grow more slowly than resource-poor ones. The authors argue that the commonly used measure of "resource abundance" is more useful as a proxy for "resource dependence," which is endogenous to underlying institutional factors. They find that resource abundance, constitutions, and institutions determine resource dependence, and that resource dependence does not affect growth. Instead, resource abundance positively affects growth and institutional quality. The study challenges the consensus view that bad institutions lead to high resource abundance, suggesting that bad institutions are associated with high resource dependence. The authors use a 2SLS and 3SLS regression analysis to explore the underlying factors determining resource dependence and institutional quality, and to examine the impact of resource abundance on economic performance. They find that resource dependence is influenced by both durable and changeable institutions, and that the form of government (presidential versus parliamentary) is more relevant than electoral rules. The paper concludes that the resource curse is a red herring, and that resources can be a blessing for both institutional and economic development.The paper critically evaluates the empirical basis for the resource curse, a paradox suggesting that resource-rich countries grow more slowly than resource-poor ones. The authors argue that the commonly used measure of "resource abundance" is more useful as a proxy for "resource dependence," which is endogenous to underlying institutional factors. They find that resource abundance, constitutions, and institutions determine resource dependence, and that resource dependence does not affect growth. Instead, resource abundance positively affects growth and institutional quality. The study challenges the consensus view that bad institutions lead to high resource abundance, suggesting that bad institutions are associated with high resource dependence. The authors use a 2SLS and 3SLS regression analysis to explore the underlying factors determining resource dependence and institutional quality, and to examine the impact of resource abundance on economic performance. They find that resource dependence is influenced by both durable and changeable institutions, and that the form of government (presidential versus parliamentary) is more relevant than electoral rules. The paper concludes that the resource curse is a red herring, and that resources can be a blessing for both institutional and economic development.