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The resource curse: A statistical mirage?

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  • James, Alexander

Abstract

A surprising feature of resource-rich economies is slow growth. It is often argued that natural-resource production impedes development by creating market or institutional failures. This paper establishes an alternative explanation—a slow-growing resource sector. A declining resource sector is disproportionately reflected in resource-dependent countries. Additionally, there is little evidence that resource dependence impedes growth in non-resource sectors. More generally, this paper illustrates the importance of considering industry composition in cross-country growth regressions.

Suggested Citation

  • James, Alexander, 2015. "The resource curse: A statistical mirage?," Journal of Development Economics, Elsevier, vol. 114(C), pages 55-63.
  • Handle: RePEc:eee:deveco:v:114:y:2015:i:c:p:55-63
    DOI: 10.1016/j.jdeveco.2014.10.006
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    More about this item

    Keywords

    Resource dependence; Economic growth; Resource curse;

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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