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A Curse or a Blessing? Natural Resources in a Multiple Growth Regimes Analysis

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  • Maty Konte

    () (Aix-Marseille Université, Greqam)

Abstract

The literature on the impact of an abundance of natural resources on economic performance remains inconclusive. In this paper we consider the possibility that countries may follow different growth regimes, and test the hypothesis that whether natural resources are a curse or a blessing depends on the growth regime to which economy belongs. We follow recent work that has used a mixture of regression method to identify different growth regimes, and find two regimes such that in one regime resources have a positive impact on growth, while in the other they have a negative impact or at best have no impact on growth. Our analysis of the determinants of whether a country belongs or not to the blessed resources regime indicates that the level of democracy plays an important role while education and economic institutions have no effect.

Suggested Citation

  • Maty Konte, 2012. "A Curse or a Blessing? Natural Resources in a Multiple Growth Regimes Analysis," AMSE Working Papers 1218, Aix-Marseille School of Economics, Marseille, France.
  • Handle: RePEc:aim:wpaimx:1218
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    References listed on IDEAS

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    Cited by:

    1. Driouchi, Ahmed, 2014. "Testing of Natural Resources as Blessing or Curse to the Knowledge Economy in Arab Countries," MPRA Paper 58598, University Library of Munich, Germany.
    2. Maty Konte, 2013. "A curse or a blessing? Natural resources in a multiple growth regimes analysis," Applied Economics, Taylor & Francis Journals, vol. 45(26), pages 3760-3769, September.
    3. repec:eco:journ2:2017-06-16 is not listed on IDEAS
    4. Dauvin, Magali & Guerreiro, David, 2017. "The Paradox of Plenty: A Meta-Analysis," World Development, Elsevier, vol. 94(C), pages 212-231.
    5. Laura Recuero Virto & Denis Couvet & Frédéric Ducarme, 2018. "The determinants of economic growth in countries with high marine biodiversity," Working Papers 2018.03, FAERE - French Association of Environmental and Resource Economists.
    6. Konte M., 2014. "Do remittances not promote growth? : a bias-adjusted three-step mixture-of-regressions," MERIT Working Papers 075, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    7. Laura Recuero Virto & Denis Couvet, 2018. "Economic growth determinants in countries with blue carbon: Natural capital as a limiting factor ?," Working Papers 2018.06, FAERE - French Association of Environmental and Resource Economists.

    More about this item

    Keywords

    Natural Resources; Mixture of regression; Multiple equilibria.;

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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