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Natural Resource Abundance: Is it a Blessing or is it a Curse

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  • Boris Petkov

    (University of Birmingham)

Abstract

The entire subject of what creates a curse rather than a blessing and how to bring about the second and avoid the earlier is a particularly complex area for discussion. It is conspicuous that countries with natural resource wealth have experienced inferior economic growth in comparison to those devoid of such gifts. We advance the following propositions: i) there is evidence that natural resource abundance is associated with negative development outcomes; ii) current explanations of the resource curse do not sufficiently account for the role of the socio-economic background; iii) counteractive policy measures in alleviating/ preventing the resource curse are feasible.

Suggested Citation

  • Boris Petkov, 2018. "Natural Resource Abundance: Is it a Blessing or is it a Curse," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 43(3), pages 25-56, September.
    • Handle: RePEc:jed:journl:v:43:y:2018:i:3:p:25-56
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    More about this item

    Keywords

    Economic Growth; Resource Curse; Prebisch-Singer Thesis (PST); Salter-Swan Model; Dutch Disease;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P17 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Performance and Prospects
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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