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The curse of natural resources: An empirical investigation of U.S. counties

  • James, Alex
  • Aadland, David

Research consistently shows that natural resource dependence tends to be associated with lower economic growth. However, the studies typically focus on differences across nations or states. We fill a gap in the literature by testing the so-called resource curse at a more disaggregated county level. Our results show clear evidence that resource-dependent counties exhibit more anemic economic growth, even after controlling for state-specific effects, socio-demographic differences, initial income, and spatial correlation. A case study analysis of Maine and Wyoming, and the counties within, highlight the growth effects of specializing in natural resource extraction.

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Article provided by Elsevier in its journal Resource and Energy Economics.

Volume (Year): 33 (2011)
Issue (Month): 2 (May)
Pages: 440-453

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Handle: RePEc:eee:resene:v:33:y:2011:i:2:p:440-453
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505569

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