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Natural Resource Abundance And Economic Growth

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  • Ding, Ning
  • Field, Barry C.

Abstract

This paper explores whether natural resource abundance leads, other things equal, to slower growth rates. We distinguish between natural resource dependence (RD) and the natural resource endowment (RE). We estimate three models, using World Bank data on national capital stocks. In a one-equation model we show that RD has a negative effect on growth rates, apparently confirming the main results of the resource "curse" literature. RE, however, has a positive impact on growth. We then estimate a two-equation model, in which the impacts of RE are much weaker. Finally, we estimate a three-equation model, in which the impacts of natural resources on growth disappears.

Suggested Citation

  • Ding, Ning & Field, Barry C., 2004. "Natural Resource Abundance And Economic Growth," Working Paper Series 14531, University of Massachusetts, Amherst, Department of Resource Economics.
    • Handle: RePEc:ags:umamwp:14531
    DOI: 10.22004/ag.econ.14531
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    References listed on IDEAS

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    1. Stijns, Jean-Philippe C., 2005. "Natural resource abundance and economic growth revisited," Resources Policy, Elsevier, vol. 30(2), pages 107-130, June.
    2. Self, Sharmistha & Grabowski, Richard, 2004. "Does education at all levels cause growth? India, a case study," Economics of Education Review, Elsevier, vol. 23(1), pages 47-55, February.
    3. Stijns, Jean-Philippe, 2006. "Natural resource abundance and human capital accumulation," World Development, Elsevier, vol. 34(6), pages 1060-1083, June.
    4. Sachs, Jeffrey D. & Warner, Andrew M., 2001. "The curse of natural resources," European Economic Review, Elsevier, vol. 45(4-6), pages 827-838, May.
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    Cited by:

    1. Nhabinde, Simeão & Heshmati, Almas, 2020. "The Extractive Industry’s impact on Economic Growth in SADC Countries," GLO Discussion Paper Series 656, Global Labor Organization (GLO).
    2. Mduduzi Biyase & Frederich Kirsten, 2020. "Education and Economic Growth in Cape and Natal Colonies:Learning from History," Journal of Developing Areas, Tennessee State University, College of Business, vol. 54(1), pages 105-120, January-M.
    3. Abdul HANNAN* & Hasan M. MOHSIN**, 2015. "Regional Analysis of Resource Curse Hypothesis: Evidence from Panel Data," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 25(1), pages 45-66.
    4. Roe, Terry L. & Gaitan, Beatriz, 2005. "Natural Resource Abundance and Economic Growth in a Two Country World," Bulletins 12979, University of Minnesota, Economic Development Center.
    5. Elliott, Vaughn M., II & Hartarska, Valentina M. & Bailey, Conner, 2008. "Stunted Growth: Natural Resource Concentration, Economic Growth, and Dutch Disease in the Southeastern United States," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6494, Southern Agricultural Economics Association.
    6. Asghar Mobarak & Ali Karshenasan, 2012. "The Impact of Institutional Quality on Relation between Resource Abundance and Economic Growth," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 17(2), pages 95-110, spring.

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