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Can Norway Be a Role Model for Natural Resource Abundant Countries? Keywords: cross-section models, economic development, natural resources, resource booms

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Author Info
Cappelen, Adne
Mjoset, Lars
Abstract

During the 1950-70s Norway had relatively low GDP per capita compared to the OECD average and even more so compared to Denmark and Sweden. During the 1970s there was a significant catch-up in incomes and from the early 1990s a .take-off. in relative income. Norway is currently ranked among the countries with the highest GDP per capita in the world and is at the top according to UNDP.s human development indicator. We argue that this development is related to the growth of the Norwegian petroleum sector, although many studies of economic growth conclude that countries abundant in natural resources are not blessed but cursed by gifts of nature. How has Norway avoided so many of the possible problems that follow in the wake of a natural resource-based development? Nowadays the standard answer to this question is .good institutions. and .clever policies.. In this paper we detail the institutions and policies that may explain the peculiar development success of Norway. There are lessons here that can contribute to policy learning, but only on the provision that the specificities of the .learning. country are understood.

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Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Papers with number rp2009-23.

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Length: 24 Number: UNU-WIDER Research Paper RP2009/23
Date of creation: 2009
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Handle: RePEc:unu:wpaper:rp2009-23

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  1. David, Paul A & Wright, Gavin, 1997. "Increasing Returns and the Genesis of American Resource Abundance," Industrial and Corporate Change, Oxford University Press, vol. 6(2), pages 203-45, March.
  2. Maloney, William F., 2002. "Missed opportunities - innovation and resource-based growth in Latin America," Policy Research Working Paper Series 2935, The World Bank. [Downloadable!]
  3. Gylfason, Thorvaldur, 2001. "Natural resources, education, and economic development," European Economic Review, Elsevier, vol. 45(4-6), pages 847-859, May. [Downloadable!] (restricted)
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  4. Halvor Mehlum & Karl Moene & Ragnar Torvik, 2006. "Institutions and the Resource Curse," Economic Journal, Royal Economic Society, vol. 116(508), pages 1-20, 01. [Downloadable!] (restricted)
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  5. Sachs, Jeffrey D. & Warner, Andrew M., 2001. "The curse of natural resources," European Economic Review, Elsevier, vol. 45(4-6), pages 827-838, May. [Downloadable!] (restricted)
  6. Murphy, Kevin M & Shleifer, Andrei & Vishny, Robert W, 1989. "Income Distribution, Market Size, and Industrialization," The Quarterly Journal of Economics, MIT Press, vol. 104(3), pages 537-64, August. [Downloadable!] (restricted)
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