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Natural resources and the wealth of nations in a globalized world economy

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  • Matteo Cervellati

    ()
    (Universitat Pompeu et Università di Bologna)

  • Piergiuseppe Fortunato

    ()
    (EUREQua et Università di Bologna)

Abstract

We study the long run relationship between natural resources abundance and wealth of countries producing differentiated products sold in the international market. When the price (terms of trade) of national products depend on the human capital used to produce them, natural resources may lead to inferior long run production. This is the case if natural resources are neither irrelevant nor focal for the production possibilities of the economy.

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File URL: ftp://mse.univ-paris1.fr/pub/mse/cahiers2004/V04068.pdf
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Bibliographic Info

Paper provided by Université Panthéon-Sorbonne (Paris 1) in its series Cahiers de la Maison des Sciences Economiques with number v04068.

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Length: 15 pages
Date of creation: Jun 2004
Date of revision:
Handle: RePEc:mse:wpsorb:v04068

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Keywords: Natural resources; globalization; human capital.;

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  1. Gary D. Hansen & Edward C. Prescott, 1999. "Malthus to Solow," Staff Report 257, Federal Reserve Bank of Minneapolis.
  2. Gylfason, Thorvaldur, 2000. "Natural Resources, Education, and Economic Development," CEPR Discussion Papers 2594, C.E.P.R. Discussion Papers.
  3. Gylfason, Thorvaldur, 2001. "Nature, Power, and Growth," Scottish Journal of Political Economy, Scottish Economic Society, vol. 48(5), pages 558-88, November.
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