IDEAS home Printed from
   My bibliography  Save this paper

Do Natural Resources Define Convergence Clubs? Empirical Evidence from the Kazakh Regions


  • Miriam Frey

    () (IOS Regensburg)

  • Carmen Wieslhuber
  • Daniel Frey


Abstract This paper deals with the hypothesis that natural resources are important in forming convergence clubs. We check this hypothesis by applying a dependence and an endowment measure of natural resource abundance and a regression tree analysis. The results indicate that for the Kazakh regions natural resources indeed play an important role in forming convergence clubs. It is further shown that rather natural resource endowment than resource dependence determines initial conditions and thereby convergence clubs.

Suggested Citation

  • Miriam Frey & Carmen Wieslhuber & Daniel Frey, 2013. "Do Natural Resources Define Convergence Clubs? Empirical Evidence from the Kazakh Regions," Working Papers 329, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
  • Handle: RePEc:ost:wpaper:329

    Download full text from publisher

    File URL:
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    1. Richard Harris, 2011. "Models Of Regional Growth: Past, Present And Future," Journal of Economic Surveys, Wiley Blackwell, vol. 25(5), pages 913-951, December.
    2. Ahrend, Rüdiger, 2012. "Understanding Russian regions’ economic performance during periods of decline and growth—An extreme bound analysis approach," Economic Systems, Elsevier, vol. 36(3), pages 426-443.
    3. Valentina Meliciani & Franco Peracchi, 2006. "Convergence in per-capita GDP across European regions: a reappraisal," Empirical Economics, Springer, vol. 31(3), pages 549-568, September.
    4. Galor, Oded, 1996. "Convergence? Inferences from Theoretical Models," Economic Journal, Royal Economic Society, vol. 106(437), pages 1056-1069, July.
    5. Durlauf, Steven N & Johnson, Paul A, 1995. "Multiple Regimes and Cross-Country Growth Behaviour," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(4), pages 365-384, Oct.-Dec..
    6. Dustin Chambers & Jang-Ting Guo, 2009. "Natural Resources and Economic Growth: Some Theory and Evidence," Annals of Economics and Finance, Society for AEF, vol. 10(2), pages 367-389, November.
    7. R. Ahrend., 2006. "How to Sustain Growth in a Resource Based Economy? The Main Concepts and their Application to the Russian Case," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 7.
    8. Gylfason, Thorvaldur, 2001. "Natural resources, education, and economic development," European Economic Review, Elsevier, vol. 45(4-6), pages 847-859, May.
    9. Kseniia Ursulenko, 2010. "Regional Development in Kazakhstan," Memoranda - Policy Papers 47, Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    10. Johnson, Paul A. & Takeyama, Lisa N., 2001. "Initial conditions and economic growth in the US states," European Economic Review, Elsevier, vol. 45(4-6), pages 919-927, May.
    11. Rudiger Ahrend, 2002. "Speed of Reform, Initial Conditions, Political Orientation, or What? Explaining Russian Regions' Economic Performance," DELTA Working Papers 2002-10, DELTA (Ecole normale supérieure).
    12. Jesus Felipe & Utsav Kumar, 2010. "The Impact of Geography and Natural Resource Abundance on Growth in Central Asia," Economics Working Paper Archive wp_629, Levy Economics Institute.
    13. Desdoigts, Alain, 1999. "Patterns of Economic Development and the Formation of Clubs," Journal of Economic Growth, Springer, vol. 4(3), pages 305-330, September.
    14. Thorvaldur Gylfason & Gylfi Zoega, 2006. "Natural Resources and Economic Growth: The Role of Investment," The World Economy, Wiley Blackwell, vol. 29(8), pages 1091-1115, August.
    15. Grier, Kevin B. & Tullock, Gordon, 1989. "An empirical analysis of cross-national economic growth, 1951-1980," Journal of Monetary Economics, Elsevier, vol. 24(2), pages 259-276, September.
    16. Fabio Canova & Albert Marcet, 1995. "The poor stay poor: Non-convergence across countries and regions," Economics Working Papers 137, Department of Economics and Business, Universitat Pompeu Fabra, revised Jun 1999.
    17. Manfred Fischer & Claudia Stirböck, 2006. "Pan-European regional income growth and club-convergence," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 40(4), pages 693-721, December.
    18. Rita De Siano & Marcella D'Uva, 2006. "Club convergence in European regions," Applied Economics Letters, Taylor & Francis Journals, vol. 13(9), pages 569-574.
    19. Baumol, William J, 1986. "Productivity Growth, Convergence, and Welfare: What the Long-run Data Show," American Economic Review, American Economic Association, vol. 76(5), pages 1072-1085, December.
    20. Carlino, Gerald A. & Mills, Leonard O., 1993. "Are U.S. regional incomes converging? : A time series analysis," Journal of Monetary Economics, Elsevier, vol. 32(2), pages 335-346, November.
    21. Gilbert E. Metcalf and Catherine Wolfram, 2015. "Cursed Resources? Political Conditions and Oil Market Outcomes," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    22. Kuralbayeva, Karlygash & Kutan, Ali M. & Wyzan, Michael L., 2001. "Is Kazakhstan vulnerable to the Dutch disease?," ZEI Working Papers B 29-2001, University of Bonn, ZEI - Center for European Integration Studies.
    23. Robert J. Barro, 2001. "Human Capital and Growth," American Economic Review, American Economic Association, vol. 91(2), pages 12-17, May.
    24. Miriam Frey & Carmen Wieslhuber, 2011. "Do Kazakh Regions Converge?," Memoranda - Policy Papers 52, Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    25. Jonathan Isham & Michael Woolcock & Lant Pritchett & Gwen Busby, 2005. "The Varieties of Resource Experience: Natural Resource Export Structures and the Political Economy of Economic Growth," World Bank Economic Review, World Bank Group, vol. 19(2), pages 141-174.
    26. Brunnschweiler, Christa N., 2008. "Cursing the Blessings? Natural Resource Abundance, Institutions, and Economic Growth," World Development, Elsevier, vol. 36(3), pages 399-419, March.
    27. Lee, Kevin & Pesaran, M Hashem & Smith, Ron, 1997. "Growth and Convergence in Multi-country Empirical Stochastic Solow Model," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 12(4), pages 357-392, July-Aug..
    28. Kutan, Ali M. & Wyzan, Michael L., 2005. "Explaining the real exchange rate in Kazakhstan, 1996-2003: Is Kazakhstan vulnerable to the Dutch disease?," Economic Systems, Elsevier, vol. 29(2), pages 242-255, June.
    29. Oskenbayev, Yessengali & Yilmaz, Mesut & Abdulla, Kanat, 2013. "Resource concentration, institutional quality and the natural resource curse," Economic Systems, Elsevier, vol. 37(2), pages 254-270.
    30. Costas Azariadis & Allan Drazen, 1990. "Threshold Externalities in Economic Development," The Quarterly Journal of Economics, Oxford University Press, vol. 105(2), pages 501-526.
    31. Stephen R. Bond & Adeel Malik, 2009. "Natural resources, export structure, and investment," Oxford Economic Papers, Oxford University Press, vol. 61(4), pages 675-702, October.
    32. Kevin Lee & M. Hashem Pesaran & Ron Smith, "undated". "Growth and Convergence in a Multi-County empirical Stochastic Solow Model," Discussion Papers in Economics 96/14, Department of Economics, University of Leicester.
    33. Rita De Siano & Marcella D'Uva, 2006. "Is There A Club Convergence Among Italian Regions?," Working Papers 1_2006, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
    34. Papyrakis, Elissaios & Gerlagh, Reyer, 2004. "The resource curse hypothesis and its transmission channels," Journal of Comparative Economics, Elsevier, vol. 32(1), pages 181-193, March.
    35. Bulte, Erwin H. & Damania, Richard & Deacon, Robert T., 2005. "Resource intensity, institutions, and development," World Development, Elsevier, vol. 33(7), pages 1029-1044, July.
    36. Papyrakis, Elissaios & Gerlagh, Reyer, 2007. "Resource abundance and economic growth in the United States," European Economic Review, Elsevier, vol. 51(4), pages 1011-1039, May.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Convergence clubs; Natural resources; Regression tree; Kazakhstan;

    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
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    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:ost:wpaper:329. 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: (Kseniia Gatskova). General contact details of provider: .

    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 CitEc recognized a reference but did not link an item in RePEc 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 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.