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How robust is the natural resource curse?

Author

Listed:
  • Stefan Norrbin
  • Onsurang Pipatchaipoom
  • Lilla Bors

Abstract

Prior research has found that countries rich in resources grow slower than countries with few natural resources. This paper re-examines the natural resource curse using updated data. In addition, the robustness of the results to various sample choices is investigated. The resource curse appears to be sensitive to the sample of countries used in the regression. In fact, eliminating a single country eliminates the significance of the curse. However, extending the methodology to allow for variation of the growth rate across decades improves the robustness of the negative effect of natural resources on the growth rate.

Suggested Citation

  • Stefan Norrbin & Onsurang Pipatchaipoom & Lilla Bors, 2008. "How robust is the natural resource curse?," International Economic Journal, Taylor & Francis Journals, vol. 22(2), pages 187-200.
  • Handle: RePEc:taf:intecj:v:22:y:2008:i:2:p:187-200
    DOI: 10.1080/10168730802079722
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    References listed on IDEAS

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    1. Jeffrey D. Sachs & Andrew M. Warner, 1995. "Natural Resource Abundance and Economic Growth," NBER Working Papers 5398, National Bureau of Economic Research, Inc.
    2. Barro, Robert J & Lee, Jong-Wha, 2001. "International Data on Educational Attainment: Updates and Implications," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 541-563, July.
    3. Osmel Manzano & Roberto Rigobon, 2001. "Resource Curse or Debt Overhang?," NBER Working Papers 8390, National Bureau of Economic Research, Inc.
    4. Perala, Maiju, 2003. "Persistence of Underdevelopment: Does the Type of Natural Resource Endowment Matter?," WIDER Working Paper Series 037, World Institute for Development Economic Research (UNU-WIDER).
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    Cited by:

    1. Bretschger, Lucas, 2015. "Energy prices, growth, and the channels in between: Theory and evidence," Resource and Energy Economics, Elsevier, vol. 39(C), pages 29-52.
    2. Dauvin, Magali & Guerreiro, David, 2017. "The Paradox of Plenty: A Meta-Analysis," World Development, Elsevier, vol. 94(C), pages 212-231.

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