Natural Resources, Export Structure, and Investment

Posted: 23 Sep 2009

See all articles by Stephen R. Bond

Stephen R. Bond

Nuffield College; Institute for Fiscal Studies (IFS)

Adeel Malik

University of Oxford; CFA Institute Research Foundation

Date Written: October 2009


We present cross-country empirical evidence on the role of natural resources in explaining long-run differences in private investment as a share of GDP in a sample of 78 developing countries. Our empirical results suggest important differences between fossil fuels and non-fuel resources. While significant fuel exports tend to increase private (and public) investment, there is also a robust negative effect from a measure of export concentration. After controlling for these two aspects of export structure, there is little additional information in other natural resource indicators, or in other suggested investment determinants, such as measures of the quality of institutions, political instability or macroeconomic volatility.

JEL Classification: E22, Q5, O16, F15

Suggested Citation

Bond, Stephen R. and Malik, Adeel, Natural Resources, Export Structure, and Investment (October 2009). Oxford Economic Papers, Vol. 61, Issue 4, pp. 675-702, 2009, Available at SSRN: or

Stephen R. Bond (Contact Author)

Nuffield College ( email )

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Institute for Fiscal Studies (IFS)

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Adeel Malik

University of Oxford ( email )

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CFA Institute Research Foundation ( email )

United States

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