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Natural Resources, State Ownership, and Economic Development

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  • Markus Bruckner
  • Chadi Bou Habib
  • Martin Lokanc

Abstract

This paper revisits the relationship between countries' natural resource abundance and economic development. We find that natural resources are supportive of pro-poor, inclusive, long-term economic growth. Cross-country regressions show that: (i) countries with greater natural resource abundance have on average significantly higher levels of GDP per capita; (ii) poverty rates are significantly lower in resource abundant countries; (iii) natural resource abundance has a significant positive effect on countries' Human Development Index. We show that state ownership is a significant transmission channel through which countries' natural resource abundance affects economic development. This is particularly true in countries that combine above-median state ownership and highly performing policies and institutions.

Suggested Citation

  • Markus Bruckner & Chadi Bou Habib & Martin Lokanc, 2023. "Natural Resources, State Ownership, and Economic Development," ANU Working Papers in Economics and Econometrics 2023-694, Australian National University, College of Business and Economics, School of Economics.
    • Handle: RePEc:acb:cbeeco:2023-694
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    File URL: https://cbe.anu.edu.au/researchpapers/econ/wp694.pdf
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    More about this item

    Keywords

    Natural Resources; National Income; Poverty; Human Development; State Ownership;
    All these keywords.

    JEL classification:

    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation

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