Natural Resource Abundance and Economic Growth

Abstract

pGIb!Ud M!P pe qss q99 M!J fl2 11.0W UJG!L bLeAlone MOL)C MG MOfl 9120 I!IG jO W9LJ1 IGII KGLU6L suq IGUU!IGL H9LU.2 IOL DGr0u 9MLGUC6 2flWWGL2 }OpGL K!Uä suq K022 reA!ue OL quqA 2psL!uä 9U GX9u2!AG swonu o suq bsLr!c!b9ue !U W HIID LG2G9LCJ LGLG9 IOL pe,btni C0WW6U2 KOpGI4 99LL0 'ioUä-%JJ9 16Gb BLS 0L0MP'. S1A9L lU2flG 101 IUGW9i0U9I DGAGI0bW9U 1SUfl9LA 4882 MG M12p O J9UJ(9SU .LSAIOL 1JjJ!2 IC 9 2flpC9uP9Il1 LGACGq AGI2IOU 0 OfiL GSLflGL bsbeL' KG2OflLCG2 suq E0U0W!C bnse VUSL Sfl U9flL9I LG2OflLCG2 19129 fiG MGSIflJ 8Uq fiG bnLcp92!u bOMGL OAGL !Wb0t42 20 fJS(11,6 UGaSflAG 9220C!SfoU P6MGGU LG2OflLCG spnuqsuce suq äLOMflJ C6L9!UI1 boae2 s coucGbplsl A9U6flGI9 9AG äoua p9ucLnbç Koua' aiUa9bOLG-M1JII6 WCUA LG2ORLCG-UCIJ GCOUOUJIGC ericp 92 fiG 0-LCJ COnUPJ.G? 01 I4GXC0 4GqS 9AG PGGU fIG LG2OflLCG-boOL M6MIA Ec0UOW!G2 (w lEe) 01 E924 V2!S-KOLG9 jSIMSU Houa 01 LeeonLce-spnuqsLu GCOU0W!62 211C1J 92 Kfl2219 IU fiG bse flJ!L71 A69L2 fiG M0L2 29L bGI4oLweLe U!UGGGUHJ suq MGLJfGP CGUff1L!62a LG2OflLC6-bOOL C0flUJG2 CICIJ 92 M!GL9Uq suq sbsu enLâGq spegq 2b9!u' qeebJG flJG OAGUJOM 01 äoq suq 2IAGL 11.0W fIG 2b9u!ep C0I0U!G2 !u flJG 1,1GM 0Lq iu fiG C0U29U WOf!1 01 GCOUOW!C p!20Ll ILl fiG 26AGU66UflJ CGUV1LX LG2OflLCG-bOOL 1,j6fliGL9U2 Gcflbe9q luG oqqX 01 LG2OflLCG-bOOL GCOLIOW!62 onbeqoLwIua LGCOflLC6-LICp GCOUOW!62 92 p661.1 s fIG GCOUOWIG2 2flC 92 !UU!91 !LJCOWG IGAGI2 Cuq jL9qG boj!c!62 2110M fi9 fii2 PSCIC UG9IG LGISpOUeIllb 2 besu 99L COLJP.0D!1J0 101 OfiGI LGIGA9U CP9L9CGL!21Ic2 01 P!äII A91fl9 01 LeaonLce-pseBq GXbOI42 0 0Db euq 0 9AG S I0MGL äLOMfJ L96 196L !U fiG bSbGL MG MDI 6eonLcG-ps2sq GxboLra 9L6 qeueq 92 9äL!CnInLG' W!UGL9le suq InGIC QU 9AeLsaG COflU1!G2 M!1J S L6I9!OU 0 fiG C0nUL)12 Li9flL9I LG2OflLCG-p92Gq GXbOL42 !U 4 8O W69211LGq 92 9 bGLCGLI O 0Db qGAGObU8 COflUL!G2 !U E!anLG 4 MIJGLG MG äisbp 69C C0nULX,2 SUL)r191 äLOMflJ L9G PGM6SU .1 aio-ge uu onbeI.1oLw LGCOflLCG-L!Cp 6COUOW!62 U GC0U0WC äLOMflr jjJG P92C bsgGw 2 GAiqeuf IU 9 C9WbIG 01 8 QUO 01 fIG 2nLbLIC!Ua tG9iflLG2 01 GC0UOWIC 1116 !2 flJ9 LeeonLcG-boOL 6COUOW!G2 0GU A9CfIX 2GCflOU 4 ufL0gncfl0u I19f1L9I bG2OflLC6 PflU9UC6 suq ECOUOW!C GLOMflJ1

Human Capital, Industrial Growth and Resource Curse

“…The negative relation between the natural resource abundance and economic growth is well documented in the literature (Sachs and Warner, 1995, 1997, 1999a,b, Sala-i-Martin, 1997, Doppelhofer et al, 2000. A number of theories were proposed to explain this negative link.…”

“…The spectrum of issues raised in the literature ranges from the issues of currency appreciation in the era of high resource prices and the subsequent "Dutch disease" effects that deteriorate the development of industrial sector of the economy (Corden and Neary, 1984;Sachs and Warner, 1995) to the political economy problems associated with the numerous nonproductive activities of economic agents provoked by the huge natural resource rents that undermine the institutional development of the economy and slow down economic development (Lane and Tornell, 1999;Auty, 2001) One of the channels that the literature addresses deals with the link between human capital development and natural resource abundance (Leamer et al, 1999;Gylfason 2001). The argument is based on the idea that resource intensive sectors absorb national savings while creating only a few eminently qualified jobs which leads to lower incentive of the society to educate their citizens compare to the societies with lower abundance in natural resources.…”

Economic Growth Volatility and Resource Curse: The Role of Financial Development

“…On the other hand, it may dampen long-term economic growth by damaging the balance of growth across different sectors of the economy. While pioneering empirical cross-country studies have established that natural resource abundance can have a negative impact on economic growth, which is known as a resource curse (Arezki and van der Ploeg, 2007;Brückner, 2010;Bulte, Damania & Deacon, 2005;Kronenberg, 2004;Rodriguez and Sachs, 1999;Sachs and Warner, 1995, 1997, 2001, the potential link between natural resource volatility and the volatility of growth has not been studied systematically yet.…”

Resource Abundance and Resource Dependence in China

“…After Habakkuk (1962) and Murphy et al (1989) claimed that growth depends on resource abundance, Sachs and Warner (1995) showed that resource abundance can also lead to poor economic performance: the 'curse of resources' hypothesis. The curse can be due to the fact that non-resource sectors are crowded out by overdevelopment of resource sectors ('Dutch disease', see Sachs and Warner, 1999), or can be explained by a rent-seeking argument (Tornell and Lane, 1999;Baland and Francois, 2000).…”