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The evolution of the natural resource curse thesis: A critical literature survey

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  • Badeeb, Ramez Abubakr
  • Lean, Hooi Hooi
  • Clark, Jeremy

Abstract

This paper surveys the natural resource curse. We review the mechanisms through which resource wealth might slow economic growth, and the empirical studies that test for an effect overall, or on factors associated with growth. We include more recent studies suggesting the resource curse reflects only empirical misspecification. After reflecting on this conflicting evidence, and the findings of other recent surveys, we argue the evidence that resource dependence negatively affects growth remains convincing, particularly working through factors closely associated with growth in developing countries. Recent contrarian studies demonstrate that future research should better address endogeneity of dependence measures, and expand the years of study and range of empirical methodologies used.

Suggested Citation

  • Badeeb, Ramez Abubakr & Lean, Hooi Hooi & Clark, Jeremy, 2017. "The evolution of the natural resource curse thesis: A critical literature survey," Resources Policy, Elsevier, vol. 51(C), pages 123-134.
  • Handle: RePEc:eee:jrpoli:v:51:y:2017:i:c:p:123-134
    DOI: 10.1016/j.resourpol.2016.10.015
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    Cited by:

    1. Pierre JACQUET & Alexis ATLANI & Marwan LISSER, 2017. "Policy responses to terms of trade shocks," Working Papers P205, FERDI.
    2. Jorge Gallego & Stanislao Maldonado & Lorena Trujillo, 2018. "Blessing a Curse? Institutional Reform and Resource Booms in Colombia," DOCUMENTOS DE TRABAJO 016225, UNIVERSIDAD DEL ROSARIO.
    3. Richard Jaimes & Reyer Gerlagh, 2017. "Resource-Richness and Economic Growth in Contemporary U.S," CESifo Working Paper Series 6778, CESifo Group Munich.
    4. Tim Wegenast & Georg Strüver & Juliane Giesen & Mario Krauser, 2017. "At Africa’s Expense? Disaggregating the Social Impact of Chinese Mining Operations," GIGA Working Paper Series 308, GIGA German Institute of Global and Area Studies.
    5. repec:gam:jsusta:v:10:y:2018:i:3:p:715-:d:134945 is not listed on IDEAS
    6. Pierre JACQUET & Alexis ATLANI & Marwan LISSER, 2017. "Policy responses to terms of trade shocks," Working Papers P205, FERDI.
    7. Mohammad Reza Farzanegan & Marcel Thum, 2017. "Oil Dependency and Quality of Education: New Empirical Evidence," MAGKS Papers on Economics 201745, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    8. repec:pal:compes:v:59:y:2017:i:3:d:10.1057_s41294-017-0028-2 is not listed on IDEAS
    9. repec:eee:jrpoli:v:54:y:2017:i:c:p:71-80 is not listed on IDEAS
    10. Maldonado, Stanislao, 2014. "The Non-Monotonic Political Effects of Resource Booms," MPRA Paper 85649, University Library of Munich, Germany, revised 18 Dec 2017.
    11. Rian Hilmawan & Jeremy Clark, 2018. "An Investigation of the Resource Curse in Indonesia," Working Papers in Economics 18/11, University of Canterbury, Department of Economics and Finance.
    12. repec:eee:enepol:v:118:y:2018:i:c:p:356-371 is not listed on IDEAS
    13. Rian Hilmawan & Jeremy Clark, 2018. "Resource Dependence and the Causes of Local Economic Growth: An Empirical Investigation," Working Papers in Economics 18/12, University of Canterbury, Department of Economics and Finance.
    14. repec:cup:endeec:v:23:y:2018:i:05:p:517-526_00 is not listed on IDEAS
    15. repec:gam:jeners:v:11:y:2018:i:10:p:2779-:d:176073 is not listed on IDEAS
    16. repec:asi:aeafrj:2017:p:952-958 is not listed on IDEAS
    17. Wegenast, Tim & Strüver, Georg & Giesen, Juliane & Krauser, Mario, 2017. "At Africa's Expense? Disaggregating the Social Impact of Chinese Mining Operations," GIGA Working Papers 308, GIGA German Institute of Global and Area Studies.

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    Keywords

    O13; O47; Q32; Q33; Natural resource curse; Natural resource dependence; Natural resource abundance; Economic growth; Literature survey;

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)

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