Natural Resource Abundance and Economic Growth

U of Massachusetts Amherst Resource Economics Working Paper No. 2004-7

17 Pages Posted: 14 Jul 2004

See all articles by Barry Field

Barry Field

University of Massachusetts at Amherst - College of Natural Resources & the Environment - Department of Resource Economics

Date Written: July 2004

Abstract

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.

Keywords: Resource abundance, growth, resource curse

JEL Classification: O49, Q56

Suggested Citation

Field, Barry, Natural Resource Abundance and Economic Growth (July 2004). U of Massachusetts Amherst Resource Economics Working Paper No. 2004-7, Available at SSRN: https://ssrn.com/abstract=564567 or http://dx.doi.org/10.2139/ssrn.564567

Barry Field (Contact Author)

University of Massachusetts at Amherst - College of Natural Resources & the Environment - Department of Resource Economics ( email )

Stockbridge Hall
80 Campus Center Way
Amherst, MA 01003-9246
United States

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