Natural Resource Abundance and Economic Growth
One of the surprising features of modern economic growth is that economies with abundant natural resources have tended to grow less rapidly than natural-resource-scarce economies. In this paper we show that economies with a high ratio of natural resource exports to GDP in 1971 (the base year) tended to have low growth rates during the subsequent period 1971-89. This negative relationship holds true even after controlling for variables found to be important for economic growth, such as initial per capita income, trade policy, government efficiency, investment rates, and other variables. We explore the possible pathways for this negative relationship by studying the cross-country effects of resource endowments on trade policy, bureaucratic efficiency, and other determinants of growth. We also provide a simple theoretical model of endogenous growth that might help to explain the observed negative relationship.
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| Length: | |
| Date of creation: | Dec 1995 |
| Publication status: | published as Sachs, Jeffrey D. and Andrew M. Warner. "The Big Rush, Natural Resource Booms And Growth," Journal of Development Economics, 1999, v59(1,Jun), 43-76. |
| Handle: | RePEc:nbr:nberwo:5398 |
| Note: | EFG IFM EEE |
| Contact details of provider: | Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A. Phone: 617-868-3900 Web page: http://www.nber.org Email: More information through EDIRC
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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.:
- Jeffrey D. Sachs & Andrew M. Warner, 1995.
"Economic Convergence and Economic Policies,"
NBER Working Papers
5039, National Bureau of Economic Research, Inc.
- Jeffrey D. Sachs & Andrew M. Warner, 1995. "Economic Convergence and Economic Policies," Harvard Institute of Economic Research Working Papers 1715, Harvard - Institute of Economic Research.
- Jeffrey Sachs & Andrew M. Warner, 1995. "Economic Convergence and Economic Policies," CASE Network Studies and Analyses 0035, CASE-Center for Social and Economic Research.
- Warner, Andrew M., 1994. "Mexico's investment collapse: debt or oil?," Journal of International Money and Finance, Elsevier, vol. 13(2), pages 239-256, April. Full references (including those not matched with items on IDEAS)
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- Maledizione delle risorse in Wikipedia Italian ne '')
- Ресурсное проклятие in Wikipedia Russian ne '')
- Kutukan sumber daya in Wikipedia Indonesian ne '')
- Ressourcenfluch in Wikipedia German ne '')
- Armut in Wikipedia German ne '')
- Прокляття ресурсів in Wikipedia Ukranian ne '')
- Resursförbannelsen in Wikipedia Swedish ne '')
- Ресурстар қарғысы in Wikipedia Kazakh ne '')
- 資源の呪い in Wikipedia Japanese ne '')
- Natural Resource Abundance and Economic Growth (NBER 1995) in ReplicationWiki
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