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Landlocked Countries, Natural Resources and Growth: The Double Economic Curse Hypothesis

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Listed:
  • Roger Alejandro Banegas Rivero

    (Universidad Aut noma Gabriel Ren Moreno, Santa Cruz de la Sierra, Bolivia,)

  • Marco Alberto Nu ez Ramirez

    (Instituto Tecnol gico de Sonora, M xico.)

  • Jorge Salas Vargas

    (Universidad Aut noma Gabriel Ren Moreno, Santa Cruz de la Sierra, Bolivia,)

  • Luis Fernando Escobar Caba

    (Universidad Aut noma Gabriel Ren Moreno, Santa Cruz de la Sierra, Bolivia,)

  • Sacnict Valdez del R o

    (Instituto Tecnol gico de Sonora, M xico.)

Abstract

In this paper, we discuss the hypothesis of a double effect of economic slowdown on economic growth, resulting by the income of natural resources and being a landlocked country. We considered the problem of heterogeneity as conditioned functions to quantile moments in response of economic growth. To do this, groups of 97 countries are considered for the period 1970-2014. The results suggest that the double economic curse presents an annual impact of -3% in quantiles of medium-low growth countries. Subsequently, additive effects between human capital and trade openness are evaluated to mitigate the lag impacts on growth: Decreasing approximately between 20% and 40% of the negative effect for low growth countries and contracting around 10% and 50% for countries with medium growth rates.

Suggested Citation

  • Roger Alejandro Banegas Rivero & Marco Alberto Nu ez Ramirez & Jorge Salas Vargas & Luis Fernando Escobar Caba & Sacnict Valdez del R o, 2019. "Landlocked Countries, Natural Resources and Growth: The Double Economic Curse Hypothesis," International Journal of Energy Economics and Policy, Econjournals, vol. 9(5), pages 113-124.
    • Handle: RePEc:eco:journ2:2019-05-14
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    JEL classification:

    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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