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Natural Resource Abundance and Economic Growth

  • Jeffrey D. Sachs
  • Andrew M. Warner

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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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5398.

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Date of creation: Dec 1995
Date of revision:
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
Contact details of provider: Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
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  1. Jeffrey Sachs & Andrew M. Warner, 1995. "Economic Convergence and Economic Policies," CASE Network Studies and Analyses 0035, CASE-Center for Social and Economic Research.
  2. 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.
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This item is featured on the following reading lists or Wikipedia pages:

  1. Прокляття ресурсів in Wikipedia Ukranian ne '')
  2. Maledizione delle risorse in Wikipedia Italian ne '')
  3. 資源の呪い in Wikipedia Japanese ne '')
  4. Ressourcenfluch in Wikipedia German ne '')
  5. Resursförbannelsen in Wikipedia Swedish ne '')
  6. Resource curse in Wikipedia English ne '')
  7. Armut in Wikipedia German ne '')
  8. Проклятие ресурсов in Wikipedia Russian ne '')
  9. Natural Resource Abundance and Economic Growth (NBER 1995) in ReplicationWiki
  10. Ресурстар қарғысы in Wikipedia Kazakh ne '')
  11. Kutukan sumber daya in Wikipedia Indonesian ne '')

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