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The 'Resource Curse' and regional US development

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  • Donald Freeman

Abstract

The 'Resource Curse' is a stylized fact that has been observed consistently in a number of development studies: countries that are relatively well-endowed with natural resources tend to grow more slowly than resource-poor economies. This article documents evidence that the Resource Curse extends to the individual states of the US Using a variety of specifications, regression of state GSP growth on resource intensity consistently shows a negative and significant relationship. There is evidence that crowding out of the manufacturing sector may contribute to the slower growth of resource-based economies.

Suggested Citation

  • Donald Freeman, 2009. "The 'Resource Curse' and regional US development," Applied Economics Letters, Taylor & Francis Journals, vol. 16(5), pages 527-530.
  • Handle: RePEc:taf:apeclt:v:16:y:2009:i:5:p:527-530
    DOI: 10.1080/13504850601032107
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    Cited by:

    1. Timothy W. Kelsey & Mark D. Partridge & Nancy E. White, 2016. "Unconventional Gas and Oil Development in the United States: Economic Experience and Policy Issues," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 38(2), pages 191-214.
    2. repec:eee:energy:v:141:y:2017:i:c:p:423-434 is not listed on IDEAS
    3. Acar, Sevil & Karahasan, Burhan Can, 2015. "Uncovering Norway’s regional disparities with respect to natural riches," REGION, European Regional Science Association, vol. 2, pages 1-31.
    4. Tsvetkova, Alexandra & Partridge, Mark, 2017. "The shale revolution and entrepreneurship: An assessment of the relationship between energy sector expansion and small business entrepreneurship in US counties," Energy, Elsevier, vol. 141(C), pages 423-434.
    5. Betz, Michael R. & Partridge, Mark D. & Farren, Michael & Lobao, Linda, 2015. "Coal mining, economic development, and the natural resources curse," Energy Economics, Elsevier, vol. 50(C), pages 105-116.
    6. Tsvetkova, Alexandra & Partridge, Mark D., 2016. "Economics of modern energy boomtowns: Do oil and gas shocks differ from shocks in the rest of the economy?," Energy Economics, Elsevier, vol. 59(C), pages 81-95.
    7. repec:eee:jrpoli:v:55:y:2018:i:c:p:196-209 is not listed on IDEAS
    8. Dauvin, Magali & Guerreiro, David, 2017. "The Paradox of Plenty: A Meta-Analysis," World Development, Elsevier, vol. 94(C), pages 212-231.
    9. repec:eee:jrpoli:v:53:y:2017:i:c:p:328-339 is not listed on IDEAS
    10. Jean Dubé & Mario Polèse, 2015. "Resource Curse and Regional Development: Does Dutch Disease Apply to Local Economies? Evidence from Canada," Growth and Change, Wiley Blackwell, vol. 46(1), pages 38-57, March.
    11. Weinstein, Amanda & Partridge, Mark & Tsvetkova, Alexandra, 2017. "Follow the Money: How Does the Income Flow After an Energy Boom," MPRA Paper 77336, University Library of Munich, Germany.

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