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Does the "Resource Curse" hold for Growth in Genuine Income as Well?

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  • Neumayer, Eric

Abstract

Existing studies analyzing the so-called ‘resource curse’ hypothesis regress growth in gross domestic product (GDP) on some measure of resource-intensity. This is problematic as GDP counts natural and other capital depreciation as income. Deducting depreciation from GDP to arrive at genuine income, we test whether the ‘curse’ still holds true. We find supporting evidence, but the growth disadvantage of resource- intensive economies is slightly weaker in terms of genuine income than GDP. We suggest that this provides additional, but somewhat weak and limited, evidence in support of those who argue that the ‘curse’ is partly due to unsustainable over-consumption.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 32 (2004)
Issue (Month): 10 (October)
Pages: 1627-1640

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Handle: RePEc:eee:wdevel:v:32:y:2004:i:10:p:1627-1640

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References

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Citations

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Cited by:
  1. Christa N. Brunnschweiler, 2006. "Cursing the blessings? Natural resource abundance, institutions, and economic growth," CER-ETH Economics working paper series 06/51, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
  2. William F. Maloney & Daniel Lederman, 2008. "In search of the Missing Resource Curse," JOURNAL OF LACEA ECONOMIA, LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
  3. Graham Davis, 2011. "The resource drag," International Economics and Economic Policy, Springer, vol. 8(2), pages 155-176, June.
  4. Brunnschweiler, Christa N. & Bulte, Erwin H., 2008. "The resource curse revisited and revised: A tale of paradoxes and red herrings," Journal of Environmental Economics and Management, Elsevier, vol. 55(3), pages 248-264, May.
  5. Daniel Lederman & William F. Maloney, 2012. "Does What You Export Matter? In Search of Empirical Guidance for Industrial Policies," World Bank Publications, The World Bank, number 9371, July.
  6. Valeria Costantini & Salvatore Monni, 2006. "Environment, human development and economic growth," Departmental Working Papers of Economics - University 'Roma Tre' 0062, Department of Economics - University Roma Tre.
  7. Aidt, T.S., 2010. "Corruption and Sustainable Development," Cambridge Working Papers in Economics 1061, Faculty of Economics, University of Cambridge.
  8. Annageldy Arazmuradov & Gianmaria Martini & Davide Scotti, 2011. "Determinants of Total Factor Productivity in Former Soviet Union Economies: A Stochastic Frontier Approach," Working Papers 1105, Department of Economics and Technology Management, University of Bergamo.
  9. Shahida Wizarat, 2013. "Natural Resources, Conflict and Growth Nexus," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 3(8), pages 1063-1082, August.
  10. Sophia du Plessis, 2006. "Institutions and Institutional Change in Zambia," Working Papers 16/2006, Stellenbosch University, Department of Economics.
  11. Ali, Issa & Harvie, Charles, 2013. "Oil and economic development: Libya in the post-Gaddafi era," Economic Modelling, Elsevier, vol. 32(C), pages 273-285.
  12. Rambaldi, Alicia N. & Hall, Greg & Brown, Richard P.C., 2006. "Re-testing the Resource Curse Hypothesis Using Panel Data and an Improved Measure of Resource Intensity," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25289, International Association of Agricultural Economists.
  13. Postali, Fernando Antonio Slaibe, 2009. "Petroleum royalties and regional development in Brazil: The economic growth of recipient towns," Resources Policy, Elsevier, vol. 34(4), pages 205-213, December.

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