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A Reappraisal of the Resource Curse

Author

Listed:
  • Nicolas Clootens

    (Univ. Orléans, CNRS, LEO, UMR 7322, F45067, Orléans, France.)

  • Djamel Kirat

    (Univ. Orléans, CNRS, LEO, UMR 7322, F45067, Orléans, France.)

Abstract

We here provide some evidence that the growth regression models used to test the resource curse should correctly account for heterogeneities between countries. We reproduce the results in a well-known article by Brunnschweiler and Bulte (2008) and then test their robustness. We show that the impact of resource dependence on growth strongly depends on the way in which we model heterogeneity. We find evidence of the resource curse in low-income countries.

Suggested Citation

  • Nicolas Clootens & Djamel Kirat, 2017. "A Reappraisal of the Resource Curse," Economics Bulletin, AccessEcon, vol. 37(1), pages 12-18.
    • Handle: RePEc:ebl:ecbull:eb-16-00701
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    References listed on IDEAS

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    1. Brunnschweiler, Christa N. & Bulte, Erwin H., 2008. "The resource curse revisited and revised: A tale of paradoxes and red herrings," Journal of Environmental Economics and Management, Elsevier, vol. 55(3), pages 248-264, May.
    2. Sachs, Jeffrey D. & Warner, Andrew M., 1999. "The big push, natural resource booms and growth," Journal of Development Economics, Elsevier, vol. 59(1), pages 43-76, June.
    3. Michael Bruno & Jeffrey Sachs, 1982. "Energy and Resource Allocation: A Dynamic Model of the "Dutch Disease"," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 49(5), pages 845-859.
    4. Robinson, James A. & Torvik, Ragnar & Verdier, Thierry, 2006. "Political foundations of the resource curse," Journal of Development Economics, Elsevier, vol. 79(2), pages 447-468, April.
    5. Frederick van der Ploeg & Steven Poelhekke, 2009. "Volatility and the natural resource curse," Oxford Economic Papers, Oxford University Press, vol. 61(4), pages 727-760, October.
    6. Sachs, J-D & Warner, A-M, 1995. "Natural Resource Abundance and Economic Growth," Papers 517a, Harvard - Institute for International Development.
    7. Michael Bruno & Jeffrey Sachs, 1982. "Energy and Resource Allocation: A Dynamic Model of the "Dutch Disease"," NBER Working Papers 0852, National Bureau of Economic Research, Inc.
    8. Torvik, Ragnar, 2001. "Learning by doing and the Dutch disease," European Economic Review, Elsevier, vol. 45(2), pages 285-306, February.
    9. Kaufmann, Daniel & Kraay, Aart & Mastruzzi, Massimo, 2007. "Governance Matters VI: Aggregate and Individual Governance Indicators, 1996-2006," Policy Research Working Paper Series 4280, The World Bank.
    10. Matsen, Egil & Torvik, Ragnar, 2005. "Optimal Dutch disease," Journal of Development Economics, Elsevier, vol. 78(2), pages 494-515, December.
    11. Gylfason, Thorvaldur, 2001. "Natural resources, education, and economic development," European Economic Review, Elsevier, vol. 45(4-6), pages 847-859, May.
    12. Corden, W M, 1984. "Booming Sector and Dutch Disease Economics: Survey and Consolidation," Oxford Economic Papers, Oxford University Press, vol. 36(3), pages 359-380, November.
    13. Krugman, Paul, 1987. "The narrow moving band, the Dutch disease, and the competitive consequences of Mrs. Thatcher : Notes on trade in the presence of dynamic scale economies," Journal of Development Economics, Elsevier, vol. 27(1-2), pages 41-55, October.
    14. Riccardo Marchi Adani & Roberto Ricciuti, 2014. "The resource curse, rule of law and accountability in African countries: a dynamic panel analys," Economics Bulletin, AccessEcon, vol. 34(3), pages 1905-1916.
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    Cited by:

    1. Amavilah, Voxi Heinrich, 2017. "The African origins of Euro-American development: Pins on an empirical roadmap," MPRA Paper 79925, University Library of Munich, Germany.
    2. Daniel Aparicio-Pérez & Jordi Ripollés, 2024. "Disentangling the heterogeneous effect of natural resources on economic growth," Working Papers 2024/02, Economics Department, Universitat Jaume I, Castellón (Spain).
    3. Xia, Liangke & Wan, Lijiang & Wang, Weizheng & Luo, Jian & Yan, Jiale, 2023. "Energy accessibility via natural resources: Do natural resources ensure energy accessibility in low income countries?," Resources Policy, Elsevier, vol. 86(PB).

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    More about this item

    Keywords

    Resource curse; Economic growth; Growth regressions;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General

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