Natural Resources: A Blessing or a Curse?
AbstractWe examine empirically the effect of natural resource abundance on economic growth. We find that natural resources have a negative impact on growth when considered in isolation, but a positive impact on growth when including in the analysis other variables such as corruption, investments, openness, terms of trade, and schooling, and treating these variables as independent. However, when we take account of the effect of natural resources on the other variables and furthermore consider the indirect effect on growth, that is, when we examine possible transmission channels, we find a strong negative effect of natural resources on growth. Finally, we calculate the relative importance of each transmission channel.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2003.8.
Date of creation: Jan 2003
Date of revision:
Natural Resources; growth; transmission channels;
Find related papers by JEL classification:
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Simon Dietz & Eric Neumayer & Indra de Soysa, 2004.
"Corruption, the Resource Curse and Genuine Saving,"
Development and Comp Systems
0405010, EconWPA, revised 21 Jan 2005.
- 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.
- Lucas Bretschger, 2006.
"Energy Prices, Growth,and the Channels in Between: Theory and Evidence,"
CER-ETH Economics working paper series
06/47, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
- Lucas Bretschger, 2010. "Energy Prices, Growth and the Channels Imbetween: Theory and evidence," OxCarre Working Papers 034, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
- Asiedu, Elizabeth & Lien, Donald, 2004. "Capital Controls and Foreign Direct Investment," World Development, Elsevier, vol. 32(3), pages 479-490, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (barbara racah).
If references are entirely missing, you can add them using this form.