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Revisiting the natural resource curse: A cross-country growth study

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  • Khalid Adnan Saeed
  • Muhammad Shafiullah

Abstract

This paper revisits the original natural resource curse study conducted by Sachs and Warner to investigate the relationship between natural resource dependence and per capita growth in recent data consisting of 68 developing countries that includes 14 Middle East & North Africa (MENA) and 6 Gulf Cooperative Council (GCC) countries between 1994–2014. Using a cross-country data and modeling we find robust evidence of a negative association between per capita growth and natural resource dependence. This negative affect is especially prominent in oil-rich MENA countries. The presence of a natural resource curse presents challenges to policymakers especially in countries who have been taking measures to diversify their income-base.

Suggested Citation

  • Khalid Adnan Saeed & Muhammad Shafiullah, 2021. "Revisiting the natural resource curse: A cross-country growth study," Cogent Economics & Finance, Taylor & Francis Journals, vol. 9(1), pages 2000555-200, January.
  • Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:2000555
    DOI: 10.1080/23322039.2021.2000555
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    Cited by:

    1. Liu, Kaiyuan & Afzal, Ayesha & Zhong, Yifan & Hasnaoui, Amir & Yue, Xiao-Guang, 2023. "Investigating the resource curse: Evidence from MENA and N-11 countries," Resources Policy, Elsevier, vol. 80(C).
    2. Feng, Jie & Gao, Junhong, 2023. "Natural resource curse hypothesis and governance: Understanding the role of rule of law and political risk in the context of China," Resources Policy, Elsevier, vol. 85(PB).
    3. Gideon Minua Kwaku Ampofo & Prosper Basommi Laari & Emmanuel Opoku Ware & Williams Shaw, 2023. "Further investigation of the total natural resource rents and economic growth nexus in resource-abundant sub-Saharan African countries," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 36(1), pages 97-121, January.

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