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Natural resources and productivity growth in developing countries

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  • Paul Awoa Awoa
  • Henri Atangana Ondoa

Abstract

Productivity growth has contributed significantly to boost living standards in many regions of the world. Concerns about certain emerging nations’ dependence on unprocessed natural resource exports have led some analysts to be sceptical about the possibilities for structural reform in resource-rich countries. We hope to contribute to the research on the nexus between natural resources and growth by examining the impact of the dependence on resources on TFP growth in 91 developing countries from 1980 to 2019. Findings demonstrate unequivocally that TFP growth is lower in resource-rich emerging nations. The results are robust to several tests, including additional control variables and the partition of resource reliance between point-source and diffuse-source resources. Furthermore, the establishment and maintenance of democratic and economic institutions enable resource-rich countries to avoid the curse.

Suggested Citation

  • Paul Awoa Awoa & Henri Atangana Ondoa, 2023. "Natural resources and productivity growth in developing countries," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 32(8), pages 1271-1290, November.
    • Handle: RePEc:taf:jitecd:v:32:y:2023:i:8:p:1271-1290
    DOI: 10.1080/09638199.2023.2255685
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