IDEAS home Printed from https://ideas.repec.org/p/cer/papers/wp451.html
   My bibliography  Save this paper

Understanding the Resource Impact Using Matching

Author

Listed:
  • Ilkin Aliyev

Abstract

We investigate the resource impact on economic growth using matching. Using a nonparametric minimum-distance matching method, we match the countries according to their observable characteristics, and estimate the relative growth rates of each matched pair. This way we are able to analyze the impact of the resources on relative growth rates, rather than on absolute growth rates as it has been done in the literature. Assuming correlation between observables and unobservables, the matching based on observables may control for unobservables as well. If this assumption is satisfied, matching allows us to control for more variables and to single out the direct effect of the resource abundance variable. We use different measures of resource abundance to check the robustness of such a relationship. The empirical results suggest that there is a strong negative relationship between relative exhaustible resource abundance and relative economic growth. For nonexhaustible resources, the results are mixed, with often a positive impact on relative growth. We discuss the contrary evidence in Sala-i-Martin et al. (2004) and highlight the differences in methodology and estimation that potentially may create differences in the results.

Suggested Citation

  • Ilkin Aliyev, 2011. "Understanding the Resource Impact Using Matching," CERGE-EI Working Papers wp451, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
  • Handle: RePEc:cer:papers:wp451
    as

    Download full text from publisher

    File URL: http://www.cerge-ei.cz/pdf/wp/Wp451.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Gary Charness & Matthew Rabin, 2002. "Understanding Social Preferences with Simple Tests," The Quarterly Journal of Economics, Oxford University Press, vol. 117(3), pages 817-869.
    2. Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory of Fairness, Competition, and Cooperation," The Quarterly Journal of Economics, Oxford University Press, vol. 114(3), pages 817-868.
    3. Cunha, Flavio & Heckman, James J. & Lochner, Lance, 2006. "Interpreting the Evidence on Life Cycle Skill Formation," Handbook of the Economics of Education, Elsevier.
    4. Armin Falk & Ernst Fehr & Urs Fischbacher, 2005. "Driving Forces Behind Informal Sanctions," Econometrica, Econometric Society, vol. 73(6), pages 2017-2030, November.
    5. Avinash Dixit, 2009. "Governance Institutions and Economic Activity," American Economic Review, American Economic Association, vol. 99(1), pages 5-24, March.
    6. Wolff, Edward N., 2008. "S. Bowles, H. Gintis and M. Osborne Groves, Editors, Unequal Chances: Family Background and Economic Success, Princeton University Press (2005)," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(4), pages 1679-1680, August.
    7. Sutter, Matthias & Kocher, Martin G., 2007. "Trust and trustworthiness across different age groups," Games and Economic Behavior, Elsevier, vol. 59(2), pages 364-382, May.
    8. Matthias Sutter & Martin G. Kocher & Daniela Glätzle-Rützler & Stefan T. Trautmann, 2013. "Impatience and Uncertainty: Experimental Decisions Predict Adolescents' Field Behavior," American Economic Review, American Economic Association, vol. 103(1), pages 510-531, February.
    9. James Heckman & Flavio Cunha, 2007. "The Technology of Skill Formation," American Economic Review, American Economic Association, vol. 97(2), pages 31-47, May.
    10. repec:pri:cheawb:case_paxson_economic_status_paper is not listed on IDEAS
    11. Anne Case & Darren Lubotsky & Christina Paxson, 2002. "Economic Status and Health in Childhood: The Origins of the Gradient," American Economic Review, American Economic Association, vol. 92(5), pages 1308-1334, December.
    12. Borghans Lex & Golsteyn Bart H.H. & Heckman James & Humphries John Eric, 2011. "Identification Problems in Personality Psychology," Research Memorandum 025, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    13. Janet Currie, 2009. "Healthy, Wealthy, and Wise: Socioeconomic Status, Poor Health in Childhood, and Human Capital Development," Journal of Economic Literature, American Economic Association, pages 87-122.
    14. Fehr, Ernst & Glätzle-Rützler, Daniela & Sutter, Matthias, 2013. "The development of egalitarianism, altruism, spite and parochialism in childhood and adolescence," European Economic Review, Elsevier, vol. 64(C), pages 369-383.
    15. repec:pri:cheawb:case_paxson_economic_status_paper.pdf is not listed on IDEAS
    16. Bettinger, Eric & Slonim, Robert, 2007. "Patience among children," Journal of Public Economics, Elsevier, pages 343-363.
    17. Anne C. Case & Lawrence F. Katz, 1991. "The Company You Keep: The Effects of Family and Neighborhood on Disadvantaged Youths," NBER Working Papers 3705, National Bureau of Economic Research, Inc.
    18. Axel Ockenfels & Gary E. Bolton, 2000. "ERC: A Theory of Equity, Reciprocity, and Competition," American Economic Review, American Economic Association, vol. 90(1), pages 166-193, March.
    19. Samuel Bowles & Herbert Gintis & Melissa Osborne Groves, 2008. "Introduction to Unequal Chances: Family Background and Economic Success," Introductory Chapters,in: Unequal Chances: Family Background and Economic Success Princeton University Press.
    20. Alison Aughinbaugh & Maury Gittleman, 2003. "Does Money Matter?: A Comparison of the Effect of Income on Child Development in the United States and Great Britain," Journal of Human Resources, University of Wisconsin Press, vol. 38(2).
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    resource-rich countries; minimum-distance matching; relative GDP growth; relative resource richness impact; omitted variable bias;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • 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
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cer:papers:wp451. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jana Koudelkova). General contact details of provider: http://edirc.repec.org/data/eiacacz.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.