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The Shifting Natural Wealth of Nations: The Role of Market Orientation

Listed author(s):
  • Rick van der Ploeg
  • Rabah Arezkir
  • Frederik Toscani

This paper explores the effect of market orientation on (known) natural wealth using a novel dataset of world-wide major hydrocarbon and mineral discoveries. Consistent with the predictions of a two-region model, our empirical estimates based on a large panel of countries show that increased market orientation causes a significant increase in discoveries. In a thought experiment whereby economies in Latin America and sub-Saharan Africa remained closed, they would have only achieved one quarter of the actual increase in discoveries they have experienced since the early 1990s. Our results call into question the commonly held view that resource endowment is exogenous.

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File URL: https://www.oxcarre.ox.ac.uk/images/stories/papers/ResearchPapers/oxcarrerp2016180.pdf
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Paper provided by Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford in its series OxCarre Working Papers with number 180.

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Date of creation: 2017
Handle: RePEc:oxf:oxcrwp:180
Contact details of provider: Postal:
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Web page: https://www.oxcarre.ox.ac.uk/
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