RT Journal Article
SR Electronic
T1 Natural Resource Abundance and Economic Growths
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 496
OP 502
DO 10.3368/le.81.4.496
VO 81
IS 4
A1 Ding, Ning
A1 Field, Barry C.
YR 2005
UL http://le.uwpress.org/content/81/4/496.abstract
AB This paper explores whether natural resource abundance leads to slower growth rates. We distinguish between natural resource dependence (RD) and natural resource endowment (RE). We estimate two 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 three-equation recursive model, introducing endogenous human capital and allowing for endogeneity also in resource dependence. Here the effects of natural resources on growth are not significant. (JEL O11, Q32)