The (Non) Effect of Natural Resource Dependence on Capital Accumulation in Latin America

42 Pages Posted: 23 Jul 2009 Last revised: 4 Apr 2011

See all articles by Luisa R. Blanco

Luisa R. Blanco

Pepperdine University School of Public Policy

Robin M. Grier

University of Oklahoma - Department of Economics

Date Written: July 22, 2009

Abstract

In a simultaneous model of human and physical capital accumulation for 18 Latin American countries from 1975 to 2004, we show that overall resource dependence is not significantly related to physical and human capital. Disaggregating the natural resource variable into subcategories, we find that petroleum export dependence is associated with higher physical capital and lower human capital, while agricultural export dependence is associated with lower levels of physical capital. All of these effects are quantitatively small, however, casting doubt on the idea that the region suffers from a resource curse in terms of capital accumulation.

Keywords: Latin America, human capital, physical capital, natural resources, education

JEL Classification: O13, O15, O16

Suggested Citation

Blanco, Luisa R. and Grier, Robin M., The (Non) Effect of Natural Resource Dependence on Capital Accumulation in Latin America (July 22, 2009). Available at SSRN: https://ssrn.com/abstract=1437755 or http://dx.doi.org/10.2139/ssrn.1437755

Luisa R. Blanco (Contact Author)

Pepperdine University School of Public Policy ( email )

24255 Pacific Coast Highway
Malibu, CA 90263
United States

Robin M. Grier

University of Oklahoma - Department of Economics ( email )

729 Elm Avenue
325 Hester Hall
Norman, OK 73019-2103
United States
405 325-0581 (Phone)
405 325-5842 (Fax)

HOME PAGE: http://faculty-staff.ou.edu/G/Kevin.B.Grier-1/

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