The Resource Curse Exorcised: Evidence from a Panel of Countries
AbstractThis paper evaluates the impact of major natural resource discoveries since 1950 on GDP per capita and other economic and social indicators. Using panel fixed-effects estimation ad resource discoveries in countries that were not previously resource-rich, I find a positive effect on GDP per capita following extraction that persists in the long term, in contrast with much of the resource curse literature that uses cross-sectional designs. I also find positive effects on education levels, reductions in infant mortality, and negative effects on democratic institutions. I further test these outcomes with synthetic control analysis, yielding results consistent the fixed-effects model.
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Bibliographic InfoPaper provided by University of California, Davis, Department of Economics in its series Working Papers with number 133.
Date of creation: 18 Mar 2013
Date of revision:
Resource Curse; Oil; Economic Growth;
Find related papers by JEL classification:
- O44 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
- Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-03-30 (All new papers)
- NEP-ENE-2013-03-30 (Energy Economics)
- NEP-FDG-2013-03-30 (Financial Development & Growth)
- NEP-RES-2013-03-30 (Resource Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Claudio Bravo-Ortega & Jose De Gregorio, .
"The Relative Richness of the Poor? Natural Resources, Human Capital and Economic Growth,"
Working Papers Central Bank of Chile
139, Central Bank of Chile.
- Bravo-Ortega, Claudio & de Gregorio, Jose, 2005. "The relative richness of the poor? natural resources, human capital, and economic growth," Policy Research Working Paper Series 3484, The World Bank.
- Brock Smith, 2014. "Dutch Disease and the Oil and Boom and Bust," OxCarre Working Papers 133, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
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