How will the estimation methodology handle reverse causation?

My papers topic is about resource curse, and this paper should be written on the basis of two materials, which I attached on. The following is the GUIDELINES. PLEASE READ THE GUIDELINES CAREFULLY.
Guidelines
The paper should be 7-15 pages typed double spaced with 1 inch margins. Papers may be written by groups of up to three people. Papers should be submitted through canvas with one submission for the group by midnight May 6. There is a 10% deduction after May 6 and a 25% deduction after May 11. The required elements are:
1. An introduction. This should motivate the reader. What will you do and why is it interesting? How does your work relate to other work? (For the term paper you just outline the main works you will use, no independent contribution is required.)
2.A theory section. Discuss the main theory or theories you will use. For child labor this is clearly Kaushik Basu. For natural resource curse it might be Mehlum and Torvik or maybe you will focus on politics as in Paul Collier. Perhaps you will combine these in some way. For Dani Rodriks paper please explain Acemoglu and Robinsons use of mortality rates in the 1800s in the estimation of current income (especially how two stage least squares will be employed) and a section on the gravity model. How will the estimation methodology handle reverse causation? What instruments will be used? Why?
3.An empirical section
What is the evidence for or against the theory? For child labor, look in google scholar for papers that cite Kaushik Basu. This is the main section for the Dani Rodrik papers. Present all the regressions we did in the second homework for sure, if you can find something to add, it will help greatly.
4.Policy (optional)
You may find the theory and evidence leads to an interesting policy discussion, or maybe not.
5.Conclude
What does the paper show? What is left unproven?
6. A bibliography of sources used with a consistent style (APA, Chicago, something..) For example:
Rodrik, D., Subramanian, A., & Trebbi, F. (2004). Institutions rule: the primacy of institutions over geography and integration in economic development. Journal of economic growth, 9(2), 131-165.
If you refer to someones work, which you must, then you need to give credit in the body of the paper. As in Rodrik, Subramanian and Trebbi (2004, p.5)…

You will find suggested papers and topics on Canvas.