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The “Resource Curse” and Regional U.S. Development

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  • Donald Freeman

    ()
    (Department of Economics and International Business, Sam Houston State University)

Abstract

The “Resource Curse” is a stylized fact that has been observed consistently in a number of development studies: countries that are relatively well-endowed with natural resources tend to grow more slowly than resource-poor economies. This paper documents evidence that the Resource Curse extends to the individual states of the U.S. Using a variety of specifications, regression of state GSP growth on resource abundance consistently shows a negative and significant relationship. There is strong evidence that resource-based economies are more volatile economies, and volatile economies may be less desirable to investors.

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Bibliographic Info

Paper provided by Sam Houston State University, Department of Economics and International Business in its series Working Papers with number 0506.

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Date of creation: Aug 2005
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Handle: RePEc:shs:wpaper:0506

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Cited by:
  1. Sevil Acar & Burhan Can Karahasan, 2013. "Uncovering Norway?S Regional Disparities With Respect To Natural Riches," ERSA conference papers ersa13p723, European Regional Science Association.

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