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Economic growth and nonrenewable resources: An empirical investigation

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  • Amos James Ibrahim-Shwilima

    (Graduate School of Economics, Waseda University, Tokyo: Japan)

Abstract

In this paper, we investigate the role of nonrenewable resources in economic growth from 1995–2010. The surprising result is that the share of nonrenewable resource exports in 1996 GDP was positively associated with subsequent economic growth. In fact, for the period under study, we found no strong evidence of the resource curse, after controlling for other important determinants of economic growth. For the period under study, most economies were open and followed policies that enabled large flows of foreign investment between economies. Our finding suggests that public institutions — measured by using an index of government effectiveness — are of paramount importance to economic growth. This suggests that if a resource-rich economy needs a greater contribution from its resources, it should improve its public- and private-sector institutions.

Suggested Citation

  • Amos James Ibrahim-Shwilima, 2015. "Economic growth and nonrenewable resources: An empirical investigation," Working Papers 1416, Waseda University, Faculty of Political Science and Economics.
    • Handle: RePEc:wap:wpaper:1416
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    References listed on IDEAS

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    2. Isaac Lyatuu & Georg Loss & Andrea Farnham & Mirko S Winkler & Günther Fink, 2021. "Short-term effects of national-level natural resource rents on life expectancy: A cross-country panel data analysis," PLOS ONE, Public Library of Science, vol. 16(5), pages 1-13, May.

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    Keywords

    growth; primary-product exports; nonrenewable resources; institutions;
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