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Increasing Returns and the Genesis of American Resource Abundance

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Author Info
David, Paul A
Wright, Gavin

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Abstract

The USA became the world's leading mineral-producing nation between 1870 and 1910, a development paralleled by the rising resource-intensity of American manufacturing. This paper challenges the premise that resource abundance simply reflected the country's geological endowment of mineral deposits. Instead, in the century following 1850 the USA exploited its natural resource potentials to a far greater extent than other countries, and did so across virtually the entire range of industrial minerals. The paper argues that "natural resource abundance" was an endogenous, "socially constructed" condition that was not geologically preordained. It examines the complex legal, institutional, technological and organizational adaptations that shaped the US supply-responses to the expanding domestic and international industrial demands for minerals and mineral products. It suggests that strong "positive feedbacks"--even in the exploitation of depletable resources--were responsible for the explosive growth of the American minerals economy. Copyright 1997 by Oxford University Press.

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Publisher Info
Article provided by Oxford University Press in its journal Industrial & Corporate Change.

Volume (Year): 6 (1997)
Issue (Month): 2 (March)
Pages: 203-45
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Handle: RePEc:oup:indcch:v:6:y:1997:i:2:p:203-45

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  1. Jean-Philippe Stijns, 2001. "Natural Resource Abundance And Economic Growth Revisited," Development and Comp Systems 0103001, EconWPA. [Downloadable!]
  2. Susan B. Carter & Richard Sutch, 1997. "Historical Perspectives on the Economic Consequences of Immigration into the United States," NBER Historical Working Papers 0106, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Prentice, David, 2008. "The origins of American industrial success: Evidence from the US portland cement industry," MPRA Paper 13409, University Library of Munich, Germany. [Downloadable!]
  4. Ian W. McLean, 2005. "Why Was Australia So Rich?," Development and Comp Systems 0509003, EconWPA. [Downloadable!]
  5. Ian W. McLean & Alan M. Taylor, 2001. "Australian Growth: A California Perspective," NBER Working Papers 8408, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Cappelen, Adne & Mjoset, Lars, 2009. "Can Norway Be a Role Model for Natural Resource Abundant Countries? Keywords: cross-section models, economic development, natural resources, resource booms," Working Papers rp2009-23, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  7. van der Ploeg, Frederick, 2008. "Why Do Many Resource-Rich Countries Have Negative Genuine Saving? Anticipation of Better Times or Rapacious Rent Seeking," CEPR Discussion Papers 7021, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  8. Stijns, Jean-Philippe C., 2001. "Natural Resource Abundance And Economic Growth Revisited," Berkeley Economics Dissertations-in-Progress Series 25127, University of California, Berkeley, Department of Agricultural and Resource Economics. [Downloadable!]
  9. Edward Barbier, 2007. "Frontiers and sustainable economic development," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 37(1), pages 271-295, May. [Downloadable!] (restricted)
  10. Kanda Naknoi, 2008. "Tariffs and the Expansion of the American Pig Iron Industry, 1870-1940," Purdue University Economics Working Papers 1214, Purdue University, Department of Economics. [Downloadable!]
  11. Stijns, Jean-Philippe, 2001. "Natural Resource Abundance and Human Capital Accumulation," Conference Papers 25128, University of California, Berkeley, Department of Agricultural and Resource Economics. [Downloadable!]
  12. Crafts, Nicholas & Venables, Anthony J., 2001. "Globalization in History: A Geographical Perspective," CEPR Discussion Papers 3079, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  13. Jean-Philippe C. Stijns, 2001. "Natural Resource Abundance and Human Capital Accumulation," Development and Comp Systems 0112001, EconWPA. [Downloadable!]
  14. van der Ploeg, Frederick, 2008. "Genuine Saving and the Voracity Effect," CEPR Discussion Papers 6831, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  15. Daniel Trefler & Susan Chun Zhu, 2000. "Beyond the Algebra of Explanation: HOV for the Technology Age," American Economic Review, American Economic Association, vol. 90(2), pages 145-149, May. [Downloadable!] (restricted)
  16. Lundström, Susanna, 2003. "Technological Opportunities and Growth in the Natural Resource Sector," Working Papers in Economics 116, Göteborg University, Department of Economics. [Downloadable!]
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