IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Open Questions about the Link Between Natural Resources and Economic Growth: Sachs and Warner Revisited

  • Daniel Lederman
  • William Maloney

What makes the work of Sachs and Warner (1995a, 1997a, 1997b, 1999) distinct from previous pessimistic arguments about the growth potential of natural resources is their reliance on econometric analysis. Our aim is to take the authors’ model specification as given, but we ask the following three questions:1. Is the negative effect of natural resource exports (as a share of GDP) sensitive to the time period used in the analysis? 2. Is this result sensitive to unknown omitted variables? 3. Is this result sensitive to endogeneity problems that afflict the traditional cross-sectional growth regressions? The main findings are that the SW result concerning the alleged negative effect of natural resource exports on growth does not pass the test of time, the NRX effect is probably due to unaccounted countryspecific effects, and dealing with endogeneity issues does not recover the SW result. However, we find that export revenue concentration does have quite a robust negative effect on economic growth. And ab out 50% of this effect is due to the negative correlation between export concentration and intraindustry trade and a positive correlation between export concentration and volatility of the real effective exchange rate.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.bcentral.cl/estudios/documentos-trabajo/pdf/dtbc141.pdf
Download Restriction: no

Paper provided by Central Bank of Chile in its series Working Papers Central Bank of Chile with number 141.

as
in new window

Length:
Date of creation: Feb 2002
Date of revision:
Handle: RePEc:chb:bcchwp:141
Contact details of provider: Postal: Casilla No967, Santiago
Phone: (562) 670 2000
Fax: (562) 698 4847
Web page: http://www.bcentral.cl/

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
  2. Malcolm Knight & Norman Loayza & Delano Villanueva, 1993. "Testing the Neoclassical Theory of Economic Growth: A Panel Data Approach," IMF Staff Papers, Palgrave Macmillan, vol. 40(3), pages 512-541, September.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:chb:bcchwp:141. 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: (Claudio Sepulveda)

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.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.