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Natural Resources and Economic Growth: A Meta-Analysis

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Listed author(s):
  • Havranek, Tomas
  • Horvath, Roman
  • Zeynalov, Ayaz

Abstract

An important question in development studies is how natural resources richness affects long-term economic growth. No consensus answer, however, has yet emerged, with approximately 40% of empirical papers finding a negative effect, 40% finding no effect, and 20% finding a positive effect. Does the literature taken together imply the existence of the so-called natural resource curse? In a quantitative survey of 605 estimates reported in 43 studies, we find that overall support for the resource curse hypothesis is weak when potential publication bias and method heterogeneity are taken into account. Our results also suggest that four aspects of study design are especially effective in explaining the differences in results across studies: (1) controlling for institutional quality, (2) controlling for the level of investment activity, (3) distinguishing between different types of natural resources, and (4) differentiating between resource dependence and abundance.

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Article provided by Elsevier in its journal World Development.

Volume (Year): 88 (2016)
Issue (Month): C ()
Pages: 134-151

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Handle: RePEc:eee:wdevel:v:88:y:2016:i:c:p:134-151
DOI: 10.1016/j.worlddev.2016.07.016
Contact details of provider: Web page: http://www.elsevier.com/locate/worlddev

Keywords: natural resources; economic growth; institutions; publication selection bias; meta-analysis;

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Find related papers by JEL classification:
  • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
  • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
  • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General

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  1. Azreen Karim & Ilan Noy, 2016. "Poverty and Natural Disasters: A Meta-Regression Analysis," Review of Economics and Institutions, Università di Perugia, vol. 7(2).
  2. Ichiro Iwasaki & Mathilde Maurel, 2017. "The Impact of Crisis on Firm Creation and Regeneration in Russia: Regional Panel Data Analysis," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01505659, HAL.
  3. Itchoko Motande Mondjeli Mwa Ndjokou & Pierre Christian Tsopmo, 2017. "The effects on economic growth of natural resources in Sub-Saharan Africa: Does the quality of institutions matters?," Economics Bulletin, AccessEcon, vol. 37(1), pages 248-263.
  4. Dauvin, Magali & Guerreiro, David, 2017. "The Paradox of Plenty: A Meta-Analysis," World Development, Elsevier, vol. 94(C), pages 212-231.
  5. Horváth, Roman & Zeynalov, Ayaz, 2016. "Natural resources, manufacturing and institutions in post-Soviet countries," Resources Policy, Elsevier, vol. 50(C), pages 141-148.
  6. repec:cnb:ocpubv:rb15/1 is not listed on IDEAS
  7. Jović, Srđan & Maksimović, Goran & Jovović, David, 2016. "Appraisal of natural resources rents and economic development," Resources Policy, Elsevier, vol. 50(C), pages 289-291.
  8. Miroslav Plasil & Jakub Seidler & Petr Hlavac & Volha Audzei & Jakub Mateju & Michal Kejak & Simona Malovana & Jan Frait, 2016. "Financial Cycles and Macroprudential and Monetary Policies," Occasional Publications - Edited Volumes, Czech National Bank, Research Department, edition 2, volume 14, number rb14/2 edited by Jan Babecky & Michal Hlavacek.

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