A Resource-Rich Neighbor Is a Misfortune: The Spatial Distribution of the Resource Curse in Brazil

We study the spatial distribution of effect oil and gas revenues on Brazilian municipalities, using variations in international prices to establish causality. Those increase nighttime light emissions oil-producing municipalities but impose negative spillovers neighboring especially those located more than 150 kilometers from activities. The two effects cancel out at level microregions. In royalties, population, prices, crime, real wages, particularly manufacturing service sectors. Spillovers are wages positive royalties crime.