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Natural Resource Abundance and Economic Growths

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  • Ning Ding
  • Barry C. Field

Abstract

This paper explores whether natural resource abundance leads to slower growth rates. We distinguish between natural resource dependence (RD) and natural resource endowment (RE). We estimate two models, using World Bank data on national capital stocks. In a one-equation model we show that RD has a negative effect on growth rates, apparently confirming the main results of the resource “curse” literature. RE, however, has a positive impact on growth. We then estimate a three-equation recursive model, introducing endogenous human capital and allowing for endogeneity also in resource dependence. Here the effects of natural resources on growth are not significant.

Suggested Citation

  • Ning Ding & Barry C. Field, 2005. "Natural Resource Abundance and Economic Growths," Land Economics, University of Wisconsin Press, vol. 81(4).
    • Handle: RePEc:uwp:landec:v:81:y:2005:i:4:p496-502
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    References listed on IDEAS

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    1. Daniel Lederman & William F. Maloney, 2007. "Natural Resources : Neither Curse nor Destiny," World Bank Publications - Books, The World Bank Group, number 7183, April.
    2. Xavier Sala-i-Martin & Arvind Subramanian, 2013. "Addressing the Natural Resource Curse: An Illustration from Nigeria," Journal of African Economies, Centre for the Study of African Economies, vol. 22(4), pages 570-615, August.
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    More about this item

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

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