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In search of the missing resource curse

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  • Lederman, Daniel
  • Maloney, William F.

Abstract

The debate over the curse of natural resources has haunted developing countries for decades if not centuries. A review of existing empirical evidencesuggests that the curse remains elusive. The fragile negative effect of natural resources on economic growth might be due to international heterogeneity in the effects of natural resources on economic growth, to the use of weak indicators of natural resources that might be unrelated to relative natural-resource endowments, or to the inability of econometric analysis based on international data to capture historical processes. This paper defends an empirical proxy for relative abundance of natural resources, which is based on standard growth theory. In turn, various econometric estimations are hopelessly deployed in the search for the missing resource curse. Some evidence suggests that natural resources might have large positive effects whose true magnitude remains unknown due to unresolved econometric issues.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4766.

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Date of creation: 01 Nov 2008
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Handle: RePEc:wbk:wbrwps:4766

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Keywords: Economic Theory&Research; Inequality; Currencies and Exchange Rates; Economic Growth; Achieving Shared Growth;

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Citations

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Cited by:
  1. Franklin Allen & Elena Carletti & Robert Cull & Jun "QJ" Qian & Lemma Senbet & Patricio Valenzuela, 2014. "Resolving the African Financial Development Gap: Cross-Country Comparisons and a Within-Country Study of Kenya," NBER Chapters, National Bureau of Economic Research, Inc, in: African Successes: Modernization and Development National Bureau of Economic Research, Inc.
  2. Daniel Lederman & William F. Maloney, 2012. "Does What You Export Matter? In Search of Empirical Guidance for Industrial Policies," World Bank Publications, The World Bank, number 9371, August.
  3. Thorvaldur Gylfason, 2011. "Natural Resource Endowment: A Mixed Blessing?," CESifo Working Paper Series 3353, CESifo Group Munich.
  4. Nuno Torres & Óscar Afonso & Isabel Soares, 2010. "The connection between oil and economic growth revisited," FEP Working Papers, Universidade do Porto, Faculdade de Economia do Porto 377, Universidade do Porto, Faculdade de Economia do Porto.
  5. Lee Robinson & Alice Nicole Sindzingre, 2012. "China’s Ambiguous Impacts on Commodity-Dependent Countries: the Example of Sub-Saharan Africa (with a Focus on Zambia)," EconomiX Working Papers 2012-39, University of Paris West - Nanterre la Défense, EconomiX.
  6. Brito, Marcio Holland de, 2010. "Inserção comercial do Brasil na américa do sul: um estudo sobre os efeitos da China na região," Textos para discussão 248, Escola de Economia de São Paulo, Getulio Vargas Foundation (Brazil).
  7. Knack, Stephen, 2009. "Sovereign rents and quality of tax policy and administration," Journal of Comparative Economics, Elsevier, vol. 37(3), pages 359-371, September.
  8. Franklin Allen & Elena Carletti & Robert Cull & Jun "QJ" Qian & Lemma Senbet, 2010. "The African Financial Development Gap," Economics Working Papers, European University Institute ECO2010/24, European University Institute.
  9. Blanco, Luisa & Grier, Robin, 2012. "Natural resource dependence and the accumulation of physical and human capital in Latin America," Resources Policy, Elsevier, Elsevier, vol. 37(3), pages 281-295.
  10. Teles, Vladimir Kuhl & Cardoso, Eliana Anastácia, 2010. "A brief history of Brazil's growth," Textos para discussão 241, Escola de Economia de São Paulo, Getulio Vargas Foundation (Brazil).
  11. Cull, Robert & Xu, L. Colin, 2011. "Job growth and finance : are some financial institutions better suited to early stages of development than others?," Policy Research Working Paper Series 5880, The World Bank.
  12. Meriem Djennas & Mohamed Benbouziane & Mustapha Djennas, 2012. "Labor Market Structure, Foreign Trade Competitiveness and Economic Growth in Eurozone," Book Chapters, Institute of Economic Sciences, Institute of Economic Sciences.
  13. Lopez, Ramon E. & Stocking, Andrew, 2009. "Bringing Growth Theory "Down to Earth"," Working Papers, University of Maryland, Department of Agricultural and Resource Economics 48944, University of Maryland, Department of Agricultural and Resource Economics.
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