Does the ‘Resource Curse’ hold for Growth in Genuine Income as well?
AbstractExisting studies analyzing the so-called ‘resource curse’ hypothesis regress growth in gross domestic product (GDP) on some measure of resource-intensity. This is problematic as GDP counts natural and other capital depreciation as income. Deducting depreciation from GDP to arrive at genuine income, we test whether the ‘curse’ still holds true. We find supporting evidence, but the growth disadvantage of resource- intensive economies is slightly weaker in terms of genuine income than GDP. We suggest that this provides additional, but somewhat weak and limited, evidence in support of those who argue that the ‘curse’ is partly due to unsustainable over-consumption.
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Date of creation: 24 Dec 2003
Date of revision: 18 May 2004
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resource curse hypothesis; natural capital; depreciation; genuine income;
Other versions of this item:
- Neumayer, Eric, 2004. "Does the "Resource Curse" hold for Growth in Genuine Income as Well?," World Development, Elsevier, vol. 32(10), pages 1627-1640, October.
- P - Economic Systems
- Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
- Z - Other Special Topics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-01-05 (All new papers)
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