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The Resource Curse: A Statistical Mirage?

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  • Alexander James

Abstract

A surprising feature of resource-rich economies is slow growth. It is often argued that natural-resource production impedes development by creating market or institutional failures. This paper establishes an alternative explanationa slow-growing resource sector.A declining resource sector is disproportionately reected in resource-dependent countries. Additionally, there is little evidence that resource dependence impedes growth in non-resource sectors. More generally, this paper illustrates the importance of considering industry composition in cross-country growth regressions.

Suggested Citation

  • Alexander James, 2014. "The Resource Curse: A Statistical Mirage?," OxCarre Working Papers 147, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
  • Handle: RePEc:oxf:oxcrwp:147
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    Cited by:

    1. Badeeb, Ramez Abubakr & Lean, Hooi Hooi & Clark, Jeremy, 2017. "The evolution of the natural resource curse thesis: A critical literature survey," Resources Policy, Elsevier, vol. 51(C), pages 123-134.
    2. Guilló, Maria Dolores & Perez-Sebastian, Fidel, 2015. "Neoclassical growth and the natural resource curse puzzle," Journal of International Economics, Elsevier, vol. 97(2), pages 423-435.
    3. repec:eee:jjieco:v:47:y:2018:i:c:p:32-54 is not listed on IDEAS
    4. Ralph de Haas & Steven Poelhekke, 2016. "Mining Matters: Natural Resource Extraction and Local Business Constraints," CESifo Working Paper Series 6198, CESifo Group Munich.
    5. Joël CARIOLLE, 2016. "The voracity and scarcity effects of export booms and busts on bribery," Working Papers P146, FERDI.
    6. repec:spr:minecn:v:31:y:2018:i:1:d:10.1007_s13563-018-0153-z is not listed on IDEAS
    7. Dauvin, Magali & Guerreiro, David, 2017. "The Paradox of Plenty: A Meta-Analysis," World Development, Elsevier, vol. 94(C), pages 212-231.
    8. repec:ana:journl:v:4:y:2018:i:1:p:39-53 is not listed on IDEAS
    9. Ahlerup, Pelle & Baskaran, Thushyanthan & Bigsten, Arne, 2016. "Gold mining and education: a long-run resource curse in Africa?," Working Papers in Economics 666, University of Gothenburg, Department of Economics, revised Mar 2017.
    10. Aramonte, Sirio & Jahan-Parvar, Mohammad & Shugarman, Justin, 2015. "Institutions and return predictability in oil-exporting countries," Finance and Economics Discussion Series 2015-14, Board of Governors of the Federal Reserve System (U.S.).
    11. Richard Jaimes & Reyer Gerlagh, 2017. "Resource-Richness and Economic Growth in Contemporary U.S," CESifo Working Paper Series 6778, CESifo Group Munich.
    12. repec:taf:uitjxx:v:30:y:2016:i:5:p:486-488 is not listed on IDEAS
    13. Al Mamun, Md & Sohag, Kazi & Hassan, M. Kabir, 2017. "Governance, resources and growth," Economic Modelling, Elsevier, vol. 63(C), pages 238-261.
    14. Vaz, Paulo Henrique, 2017. "Discovery of natural resources: A class of general equilibrium models," Energy Economics, Elsevier, vol. 61(C), pages 174-178.
    15. repec:eee:jcecon:v:45:y:2017:i:3:p:622-643 is not listed on IDEAS
    16. Roberto Álvarez & Álvaro García Marín & Sebastián Ilabaca, 2017. "Commodity Prices Shocks and Poverty Reduction in Chile," Working Papers wp449, University of Chile, Department of Economics.
    17. Giorgio d'Agostino & J Paul Dunne & Luca Pieroni, 2016. "How much does military spending affect growth? Causal estimates from the World's non-rich countries," SALDRU Working Papers 196, Southern Africa Labour and Development Research Unit, University of Cape Town.
    18. Ahmed, Khalid & Mahalik, Mantu Kumar & Shahbaz, Muhammad, 2016. "Dynamics between economic growth, labor, capital and natural resource abundance in Iran: An application of the combined cointegration approach," Resources Policy, Elsevier, vol. 49(C), pages 213-221.
    19. James, Alexander, 2016. "The long-run vanity of Prudhoe Bay," Resources Policy, Elsevier, vol. 50(C), pages 270-275.

    More about this item

    Keywords

    Resource Dependence; Economic Growth Resource Curse;

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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