An Empirical Analysis of Resource Curse and the Educational Attainment Channel in the Appalachian Region
Anne W. Walker
West Virginia University
March 21, 2013
I choose a set of 409 counties in the Appalachian region of the U.S. based on several exogenous criteria, and use this relatively homogenous sample to empirically study the resource curse and its potential channels. I measure the effect of resource abundance on long run income growth using the natural experiment of variation in coal endowments in the Appalachia region. I find evidence that coal abundance significantly reduces growth of per capita income over the long run. I also find evidence that the educational attainment channel plays a significant role in this negative effect of resource abundance.
Number of Pages in PDF File: 31
Keywords: natural resources, resource curse, Appalachian region, coal
JEL Classification: O18, Q32, Q33, R12
Date posted: October 24, 2012 ; Last revised: May 4, 2013
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