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Mineral resource abundance and regional growth in Spain, 1860-2000

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  • Jordi Domenech

    (University of York, York, UK)

Abstract

The natural resource curse hypothesis predicts that natural resource windfalls can reduce the long run level of income per capita by crowding out manufacturing, slowing down the accumulation of human capital, damaging institutions and increasing inequality. This paper explores some of the central tenets of the natural resource curse literature by exploiting variation in mineral resources in Spain from 1860 to 1936. The conclusions of the paper are that, contrary to the natural resource curse hypothesis, natural resources had a positive, sizeable effect on industrialisation by 1920 and that they did not reduce real wage growth in the period 1860-1920. Moreover, extractive industries did not slow down the accumulation of human capital. When I look at the very long run by analysing real income per capita convergence from 1930 to 2000, there are no significant costs of early specialisation in extractive industries. Copyright © 2008 John Wiley & Sons, Ltd.

Suggested Citation

  • Jordi Domenech, 2008. "Mineral resource abundance and regional growth in Spain, 1860-2000," Journal of International Development, John Wiley & Sons, Ltd., vol. 20(8), pages 1122-1135.
    • Handle: RePEc:wly:jintdv:v:20:y:2008:i:8:p:1122-1135
    DOI: 10.1002/jid.1515
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    Cited by:

    1. Guy Michaels, 2011. "The Long Term Consequences of Resource‐Based Specialisation," Economic Journal, Royal Economic Society, vol. 121(551), pages 31-57, March.
    2. José Joaquín García-Gómez & Juan Diego Pérez-Cebada, 2020. "A Socio-Environmental History of a Copper Mining Company: Rio-Tinto Company Limited (1874–1930)," Sustainability, MDPI, vol. 12(11), pages 1-17, June.
    3. Maurer, Stephan E. & Potlogea, Andrei, 2014. "Fueling the gender gap? Oil and women's labor and marriage market outcomes," LSE Research Online Documents on Economics 60351, London School of Economics and Political Science, LSE Library.
    4. Hunt Allcott & Daniel Keniston, 2015. "Dutch Disease or Agglomeration? The Local Economic Effects of Natural Resource Booms in Modern America," Working Papers 15-41, Center for Economic Studies, U.S. Census Bureau.
    5. Frederiksen, Anders & Kadenic, Maja Due, 2016. "Mining in Arctic and Non-Arctic Regions: A Socioeconomic Assessment," IZA Discussion Papers 9883, Institute of Labor Economics (IZA).
    6. Galina Williams & Ruth Nikijuluw, 2020. "The economic and social benefit of coal mining: the case study of regional Queensland," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(4), pages 1113-1132, October.
    7. Radley, Ben, 2020. "A distributional analysis of artisanal and industrial wage levels and expenditure in the Congolese mining sector," LSE Research Online Documents on Economics 106512, London School of Economics and Political Science, LSE Library.
    8. Rosés, Joan R. & Minns, Chris, 2018. "Power to the Periphery? The failure of Regional Convergence in Canada, 1890-2006," CEPR Discussion Papers 12803, C.E.P.R. Discussion Papers.
    9. Ticci, Elisa & Escobal, Javier, 2015. "Extractive industries and local development in the Peruvian Highlands," Environment and Development Economics, Cambridge University Press, vol. 20(1), pages 101-126, February.
    10. Frantál, Bohumil, 2016. "Living on coal: Mined-out identity, community displacement and forming of anti-coal resistance in the Most region, Czech Republic," Resources Policy, Elsevier, vol. 49(C), pages 385-393.
    11. Grant Mark Nülle & Graham A. Davis, 2018. "Neither Dutch nor disease?—natural resource booms in theory and empirics," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 31(1), pages 35-59, May.
    12. Henry Willebald & Marc Badia-Miró & Vicente Pinilla, 2015. "Natural Resources and Economic Development. Some lessons from History," Documentos de Trabajo (DT-AEHE) 1504, Asociación Española de Historia Económica.
    13. Martinez-Galarraga, Julio, 2012. "The determinants of industrial location in Spain, 1856–1929," Explorations in Economic History, Elsevier, vol. 49(2), pages 255-275.
    14. Hunt Allcott & Daniel Keniston, 2014. "Dutch Disease or Agglomeration? The Local Economic Effects of Natural Resource Booms in Modern America," NBER Working Papers 20508, National Bureau of Economic Research, Inc.
    15. Marañon, Matias & Kumral, Mustafa, 2021. "Empirical analysis of Chile's copper boom and the Dutch Disease through causality and cointegration tests," Resources Policy, Elsevier, vol. 70(C).
    16. Acuna, Julio & Balza, Lenin H. & Gomez-Parra, Nicolas, 2024. "From wells to wealth? Government transfers and human capital," Journal of Development Economics, Elsevier, vol. 166(C).
    17. Nicoletta Corrocher & Camilla Lenzi & Marie-Louise Deshaires, 2020. "The curse of natural resources: an empirical analysis of European regions," Regional Studies, Taylor & Francis Journals, vol. 54(12), pages 1694-1708, December.
    18. Kota Ogasawara, 2021. "Technology, Institution, and Regional Growth: Evidence from Mineral Mining Industry in Industrializing Japan," Papers 2112.14514, arXiv.org, revised Oct 2024.

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