Frontiers and sustainable economic development
Exploiting new resource “frontiers,” such as agricultural land and mineral reserves, is a fundamental feature of economic development in poor economies. Yet frontier-based development is symptomatic of a pattern of economy-wide resource exploitation in developing economies that: (a) generates little additional economic rents, and (b) what rents are generated are not being reinvested in other sectors. Such development is inherently unsustainable. The following paper explains this phenomenon, and provides evidence that long-run expansion of agricultural land and oil and natural gas proved reserves across poor economies is associated with lower levels of real income per capita. The paper proposes a frontier expansion hypothesis to explain why the structural economic dependence of these economies on frontier land expansion and resource exploitation is not conducive to sustained long-run growth. The key to sustainable economic development in poor economies will be improving the economic integration between frontier and other sectors of the economy, targeting policies to improved resource management in frontier areas and overcoming problems of corruption and rent-seeking in resource sectors. Copyright Springer Science+Business Media, Inc. 2007
Volume (Year): 37 (2007)
Issue (Month): 1 (May)
|Contact details of provider:|| Web page: http://www.springerlink.com/link.asp?id=100263|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Halvor Mehlum & Karl Moene & Ragnar Torvik, 2004.
"Institutions and the Resource Curse,"
DEGIT Conference Papers
c009_012, DEGIT, Dynamics, Economic Growth, and International Trade.
- Mehlum, Halvor & Moene, Karl-Ove & Torvik, Ragnar, 2003. "Institutions and the resource curse," Memorandum 29/2002, Oslo University, Department of Economics.
- Halvor Mehlum & Karl Moene & Ragnar Torvik, 2002. "Institutions and the resource curse," GE, Growth, Math methods 0210004, EconWPA.
- Halvor Mehlum & Karl Moene & Ragnar Torvik, 2002. "Institutions and the resource curse," Development and Comp Systems 0210003, EconWPA.
- Gavin Wright & Jesse Czelusta, 2002. "Exorcizing the Resource Curse: Minerals as a Knowledge Industry, Past and Present," Working Papers 02008, Stanford University, Department of Economics.
- Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2004.
"Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development,"
Journal of Economic Growth,
Springer, vol. 9(2), pages 131-165, 06.
- Rodrik, Dani & Subramanian, Arvind & Trebbi, Francesco, 2002. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," CEPR Discussion Papers 3643, C.E.P.R. Discussion Papers.
- Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2002. "Institutions Rule: The Primacy of Institutions over Geography and Integration in Economic Development," NBER Working Papers 9305, National Bureau of Economic Research, Inc.
- Hausman, Jerry A & Taylor, William E, 1981.
"Panel Data and Unobservable Individual Effects,"
Econometric Society, vol. 49(6), pages 1377-98, November.
- Clive Southey, 1978. "The Staples Thesis, Common Property, and Homesteading," Canadian Journal of Economics, Canadian Economics Association, vol. 11(3), pages 547-59, August.
- Gilbert E. Metcalf, 1996.
"Specification Testing in Panel Data With Instrumental Variables,"
NBER Technical Working Papers
0123, National Bureau of Economic Research, Inc.
- Metcalf, Gilbert E., 1996. "Specification testing in panel data with instrumental variables," Journal of Econometrics, Elsevier, vol. 71(1-2), pages 291-307.
- Metcalf, G.E., 1991. "Specification Testing In Panel Data With Instrumental Variables," Papers 358, Princeton, Department of Economics - Econometric Research Program.
- Torvik, Ragnar, 2002. "Natural resources, rent seeking and welfare," Journal of Development Economics, Elsevier, vol. 67(2), pages 455-470, April.
- John Hartwick, 1976.
"Intergenerational Equity and the Investing of Rents from Exhaustible Resources,"
220, Queen's University, Department of Economics.
- Hartwick, John M, 1977. "Intergenerational Equity and the Investing of Rents from Exhaustible Resources," American Economic Review, American Economic Association, vol. 67(5), pages 972-74, December.
- Robert T. Deacon, 1999. "Deforestation and Ownership: Evidence from Historical Accounts and Contemporary Data," Land Economics, University of Wisconsin Press, vol. 75(3), pages 341-359.
- Sachs, Jeffrey D. & Warner, Andrew M., 2001. "The curse of natural resources," European Economic Review, Elsevier, vol. 45(4-6), pages 827-838, May.
- Edward J. Chambers & Donald F. Gordon, 1966. "Primary Products and Economic Growth: An Empirical Measurement," Journal of Political Economy, University of Chicago Press, vol. 74, pages 315.
- Bromley, Daniel W., 1989. "Property relations and economic development: The other land reform," World Development, Elsevier, vol. 17(6), pages 867-877, June.
- David, Paul A & Wright, Gavin, 1997. "Increasing Returns and the Genesis of American Resource Abundance," Industrial and Corporate Change, Oxford University Press, vol. 6(2), pages 203-45, March.
- Edward B. Barbier, 2004. "Explaining Agricultural Land Expansion and Deforestation in Developing Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1347-1353.
- Barbier, Edward B. & Damania, Richard & Leonard, Daniel, 2005. "Corruption, trade and resource conversion," Journal of Environmental Economics and Management, Elsevier, vol. 50(2), pages 276-299, September.
- Edward B. Barbier, 2003.
"The Role of Natural Resources in Economic Development,"
Australian Economic Papers,
Wiley Blackwell, vol. 42(2), pages 253-272, 06.
- Edward Barbier, 2002. "The Role of Natural Resources in Economic Development," Centre for International Economic Studies Working Papers 2002-27, University of Adelaide, Centre for International Economic Studies.
- Davis, Graham A., 1995. "Learning to love the Dutch disease: Evidence from the mineral economies," World Development, Elsevier, vol. 23(10), pages 1765-1779, October.
- Hansen, Bent, 1979. "Colonial Economic Development with Unlimited Supply of Land: A Ricardian Case," Economic Development and Cultural Change, University of Chicago Press, vol. 27(4), pages 611-27, July.
- Findlay, R. & Lundahl, M., 1992. "Natural Resources "Vent for Surplus" and the Staple Theory," Discussion Papers 1992_04, Columbia University, Department of Economics.
- Edward B. Barbier, 2005. "Natural Resource-Based Economic Development in History," World Economics, World Economics, Economic & Financial Publishing, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 6(3), pages 103-152, July.
- Thorvaldur Gylfason, 2001.
"Nature, Power, and Growth,"
CESifo Working Paper Series
413, CESifo Group Munich.
- Ronald Findlay, 1995. "Factor Proportions, Trade, and Growth," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262061759, June.
When requesting a correction, please mention this item's handle: RePEc:kap:enreec:v:37:y:2007:i:1:p:271-295. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.