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Mineral resource abundance and regional growth in Spain, 1860-2000

  • Jordi Domenech

    (University of York, York, UK)

The natural resource curse hypothesis predicts that natural resource windfalls can reduce the long run level of income per capita by crowding out manufacturing, slowing down the accumulation of human capital, damaging institutions and increasing inequality. This paper explores some of the central tenets of the natural resource curse literature by exploiting variation in mineral resources in Spain from 1860 to 1936. The conclusions of the paper are that, contrary to the natural resource curse hypothesis, natural resources had a positive, sizeable effect on industrialisation by 1920 and that they did not reduce real wage growth in the period 1860-1920. Moreover, extractive industries did not slow down the accumulation of human capital. When I look at the very long run by analysing real income per capita convergence from 1930 to 2000, there are no significant costs of early specialisation in extractive industries. Copyright © 2008 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/jid.1515
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Article provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.

Volume (Year): 20 (2008)
Issue (Month): 8 ()
Pages: 1122-1135

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Handle: RePEc:wly:jintdv:v:20:y:2008:i:8:p:1122-1135
Contact details of provider: Web page: http://www3.interscience.wiley.com/journal/5102/home

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  1. Krugman, Paul, 1987. "The narrow moving band, the Dutch disease, and the competitive consequences of Mrs. Thatcher : Notes on trade in the presence of dynamic scale economies," Journal of Development Economics, Elsevier, vol. 27(1-2), pages 41-55, October.
  2. Sachs, J-D & Warner, A-M, 1995. "Natural Resource Abundance and Economic Growth," Papers 517a, Harvard - Institute for International Development.
  3. Daniel Lederman & William F. Maloney, 2007. "Natural Resources : Neither Curse nor Destiny," World Bank Publications, The World Bank, number 7183, September.
    • Anthony J. Venables & William Maloney & Ari Kokko & Claudio Bravo Ortega & Daniel Lederman & Roberto Rigobón & José De Gregorio & Jesse Czelusta & Shamila A. Jayasuriya & Magnus Blomström & L. Colin X, 2007. "Natural Resources: Neither Curse nor Destiny," IDB Publications (Books), Inter-American Development Bank, number 59538 edited by William Maloney & Daniel Lederman.
  4. Halvor Mehlum & Karl Moene & Ragnar Torvik, 2002. "Institutions and the resource curse," Development and Comp Systems 0210003, EconWPA.
  5. Crafts, Nicholas & Mulatu, Abay, 2006. "How Did the Location of Industry Respond to Falling Transport Costs in Britain Before World War I?," The Journal of Economic History, Cambridge University Press, vol. 66(03), pages 575-607, September.
  6. Tirado, D.A. & Paluzie, E. & Pons, J., 2000. "Economic Integration and Industrial Location: The Case of Spain Before WWI," Papers 2000/2, European Institute - History.
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