Natural Resources: A Blessing or a Curse?

21 Pages Posted: 27 Feb 2003

See all articles by Elissaios Papyrakis

Elissaios Papyrakis

VU University Amsterdam - Institute for Environmental Studies (IVM)

Reyer Gerlagh

Tilburg University - Tilburg University School of Economics and Management

Date Written: January 2003

Abstract

We examine empirically the effect of natural resource abundance on economic growth. We find that natural resources have a negative impact on growth when considered in isolation, but a positive impact on growth when including in the analysis other variables such as corruption, investments, openness, terms of trade, and schooling, and treating these variables as independent. However, when we take account of the effect of natural resources on the other variables and furthermore consider the indirect effect on growth, that is, when we examine possible transmission channels, we find a strong negative effect of natural resources on growth. Finally, we calculate the relative importance of each transmission channel.

JEL Classification: C21, O13, Q33

Suggested Citation

Papyrakis, Elissaios and Gerlagh, Reyer, Natural Resources: A Blessing or a Curse? (January 2003). FEEM Working Paper No. 8.2003. Available at SSRN: https://ssrn.com/abstract=383482 or http://dx.doi.org/10.2139/ssrn.383482

Elissaios Papyrakis (Contact Author)

VU University Amsterdam - Institute for Environmental Studies (IVM) ( email )

De Boelelaan 1115
Amsterdam, 1081 HV
Netherlands
+31 20 44 49502 (Phone)
+31 20 44 49553 (Fax)

Reyer Gerlagh

Tilburg University - Tilburg University School of Economics and Management ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

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