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Exorcizing the Resource Curse: Minerals as a Knowledge Industry, Past and Present

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  • Gavin Wright
  • Jesse Czelusta

Abstract

July 2002 Recent literature argues that natural resource abundance is likely to be bad for economic growth. This paper provides a counterargument by highlighting examples of successful resource-based development. The first is historical: the United States from the mid-nineteenth century to the mid-twentieth. We show that U.S. mineral abundance was an endogenous historical phenomenon driven by collective learning, increasing returns, and an accommodating legal environment. Recent instances of successful resource-based growth affirm that so-called “nonrenewable” resources can be progressively extended through exploration, technological progress, and investments in appropriate knowledge. Indeed, minerals constitute a high-tech knowledge industry in many countries. Working Papers Index

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  • Gavin Wright & Jesse Czelusta, 2002. "Exorcizing the Resource Curse: Minerals as a Knowledge Industry, Past and Present," Working Papers 02008, Stanford University, Department of Economics.
    • Handle: RePEc:wop:stanec:02008
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    2. Mounir Amdaoud, 2019. "Ressources naturelles, innovation et développement économique : vers une nouvelle approche," Working Papers hal-02136083, HAL.
    3. Catarina Roseta-Palma & Alexandra Ferreira-Lopes & Tiago Neves Sequeira, 2008. "Towards an Inclusive Model of Sustainable Growth," Working Papers Series 1 ercwp0408, ISCTE-IUL, Business Research Unit (BRU-IUL).
    4. Barbier,Edward B., 2007. "Natural Resources and Economic Development," Cambridge Books, Cambridge University Press, number 9780521706513.
    5. Edward Barbier, 2007. "Frontiers and sustainable economic development," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(1), pages 271-295, May.
    6. Smulders, J.A., 2005. "Endogenous technological change, natural resources and growth," Other publications TiSEM d6e27500-7604-420f-9961-4, Tilburg University, School of Economics and Management.
    7. Rudiger Ahrend, 2008. "Can Russia Sustain Strong Growth As a Resource Based Economy?," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 9(02), pages 3-8, July.
    8. Eliasson, Ludvik & Turnovsky, Stephen J., 2004. "Renewable resources in an endogenously growing economy: balanced growth and transitional dynamics," Journal of Environmental Economics and Management, Elsevier, vol. 48(3), pages 1018-1049, November.
    9. Frederick van der Ploeg, 2011. "Natural Resources: Curse or Blessing?," Journal of Economic Literature, American Economic Association, vol. 49(2), pages 366-420, June.
    10. Ricardo N. Bebczuk & Daniel Berrettoni, 2006. "Explaining Export Diversification: An Empirical Analysis," Department of Economics, Working Papers 065, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata.
    11. Elkhan Richard Sadik-Zada & Wilhelm Loewenstein & Yadulla Hasanli, 2019. "Commodity Revenues, Agricultural Sector and the Magnitude of Deindustrialization: A Novel Multisector Perspective," Economies, MDPI, vol. 7(4), pages 1-15, November.
    12. Jean-Luc Hélis & Ms. Teresa Daban Sanchez, 2010. "A Public Financial Management Framework for Resources-Producing Countries," IMF Working Papers 2010/072, International Monetary Fund.
    13. Mina Baliamoune-Lutz, 2011. "Growth by Destination (Where You Export Matters): Trade with China and Growth in African Countries," African Development Review, African Development Bank, vol. 23(2), pages 202-218.
    14. Sergey Kadochnikov & Anna Fedyunina, 2013. "Export diversification in the product space and regional growth: Evidence from Russia," Papers in Evolutionary Economic Geography (PEEG) 1327, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Dec 2013.

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