Natural Resource Abundance and Economic Growth
University of Massachusetts at Amherst - College of Natural Resources & the Environment - Department of Resource Economics
U of Massachusetts Amherst Resource Economics Working Paper No. 2004-7
This paper explores whether natural resource abundance leads, other things equal, to slower growth rates. We distinguish between natural resource dependence (RD) and the natural resource endowment (RE). We estimate three models, using World Bank data on national capital stocks. In a one-equation model we show that RD has a negative effect on growth rates, apparently confirming the main results of the resource "curse" literature. RE, however, has a positive impact on growth. We then estimate a two-equation model, in which the impacts of RE are much weaker. Finally, we estimate a three-equation model, in which the impacts of natural resources on growth disappears.
Number of Pages in PDF File: 17
Keywords: Resource abundance, growth, resource curse
JEL Classification: O49, Q56working papers series
Date posted: July 14, 2004
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