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The resource curse: A statistical mirage?

Alexander James
- 01 May 2015 - 
- Vol. 114, pp 55-63
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TLDR
In this paper, a slow-growing resource sector is identified as a surprising feature of resource-rich economies and it is often argued that natural-resource production impedes development by creating market or institutional failures.
About: 
This article is published in Journal of Development Economics.The article was published on 2015-05-01 and is currently open access. It has received 102 citations till now. The article focuses on the topics: Resource curse & Resource dependence theory.

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The evolution of the natural resource curse thesis: A critical literature survey

Ramez Abubakr Badeeb, +2 more
- 01 Mar 2017 - 
TL;DR: The authors survey the evidence that resource dependence negatively affects economic growth, particularly working through factors closely associated with growth in developing countries, and argue that future research should better address endogeneity of dependence measures.
Journal ArticleDOI

The Impact of Natural Resources: Survey of Recent Quantitative Evidence

Frederick van der Ploeg, +1 more
- 01 Feb 2017 - 
TL;DR: A recent wave of studies on measuring the impact of natural resource windfalls on the economy exploits novel datasets such as giant oil discoveries to identify effects of windfalls, uses natural experiments and within-country econometric analysis, and estimates local impacts as mentioned in this paper.
Journal ArticleDOI

Dynamics between economic growth, labor, capital and natural resource abundance in Iran: An application of the combined cointegration approach

Khalid Ahmed, +3 more
- 01 Sep 2016 - 
TL;DR: In this paper, the authors discuss the missing case of Iran and test the resource curse hypothesis using the updated time-series data over the extended period of 1965-2011, and find that the exploitation of natural resources negatively affects the competitiveness of other sectors and limits their ability to contribute to economic growth.
Journal ArticleDOI

Natural resource abundance, resource industry dependence and economic green growth in China

Zhonghua Cheng, +2 more
- 01 Oct 2020 - 
TL;DR: Based on the statistical data of 30 provinces in China from 2003 to 2016, the authors empirically analyzes the effects of both natural resource abundance and resource industry dependence on the green total factor productivity and its mechanism of transmission.
Journal ArticleDOI

Resource rents, economic growth, and the role of institutional quality: A panel threshold analysis

Mohamued Elyas Abdulahi, +2 more
- 01 Jun 2019 - 
TL;DR: In this paper, the authors used rule of law (i.e., institutional quality; IQ) as a threshold variable and revisited the nonlinear relationship between natural resource rent and economic growth under the resource curse hypothesis.
References
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Journal ArticleDOI

Greed and grievance in civil war

Paul Collier, +1 more
- 30 Nov 1999 - 
TL;DR: The authors investigated the causes of civil war, using a new data set of wars during 1960-99 and found that economic viability appears to be the predominant systematic explanation of rebellion, while atypically severe grievances such as high inequality, a lack of political rights, or ethnic and religious divisions in society.
Posted Content

Natural Resource Abundance and Economic Growth

Jeffrey D. Sachs, +2 more
- 01 Dec 1995 - 
TL;DR: The authors showed that countries with a high ratio of natural resource exports to GDP tended to have low growth rates during the subsequent period 1971-89, even after controlling for variables found to be important for economic growth, such as initial per capita income, trade policy, government efficiency, investment rates, and other variables.
Journal ArticleDOI

The curse of natural resources

Jeffrey D. Sachs, +1 more
- 01 May 2001 - 
TL;DR: The authors showed that there is little direct evidence that omitted geographical or climate variables explain the curse of natural resources, or that there was a bias resulting from some other unobserved growth deterrent.
Journal ArticleDOI

Booming Sector and De-Industrialisation in a Small Open Economy

Warner Max Corden, +1 more
- 01 Dec 1982 - 
TL;DR: In this article, the authors present a theoretical analysis of the Dutch Disease, the phenomenon whereby a boom in one traded goods sector squeezes porfitability in other traded goods sectors, both by directly and indirectly.
Journal ArticleDOI

Does Oil Hinder Democracy

Michael L. Ross
- 01 Apr 2001 - 
TL;DR: The authors examined three aspects of this "oil impedes democracy" claim and found that oil exports are strongly associated with authoritarian rule, and that other types of mineral exports have a similar antidemocratic effect, while other commodity exports do not.
Related Papers (5)

Institutions and the Resource Curse

Halvor Mehlum, +2 more
- 01 Jan 2006 - 

Natural Resources: Curse or Blessing?

Frederick van der Ploeg
- 01 Jun 2011 - 

The Resource Curse Revisited and Revised: A Tale of Paradoxes and Red Herrings

Christa N. Brunnschweiler, +2 more
- 01 May 2008 - 

The curse of natural resources

Jeffrey D. Sachs, +1 more
- 01 May 2001 - 

Natural resources, education, and economic development

Thorvaldur Gylfason
- 01 May 2001 - 
Frequently Asked Questions (8)
Q1. What are the contributions in "The resource curse: a statistical mirage? resources" ?

This paper establishes an alternative explanation a slow-growing resource sector. More generally, this paper illustrates the importance of considering industry composition in cross-country growth 

Because resource dependence is de ned as resource earnings relative to income, poorer countries that may grow relatively slowly will tend to be more resource dependent than their wealthier, perhaps faster growing counterparts. 

Rent-seeking has also been shown to lead to distortions in the allocation of resources, greater social inequality and political corruption (Ross, 1999; Sala-i-martin and Subramanian, 2004). 

In essence, resource-rich countries grew slowly from 1980 onward because they were dependent on a commodity that experienced a rapid decline in price. 

While non-resource sector growth is insigni cantly correlated with resource dependence, the relationship between resource dependence and resource-sector growth is negative (-.085) and signi cant at the 5% level. 

One reason for this may be that the presence of natural resources (think agriculture and energy) make autarky a more viable trade policy. 

Weighting growth rates by resource and non-resource dependence is important as even large changes in non-resource production is not re ected by changes in GDP in highly resource-dependent countries. 

For growth periods based in 1980 (a year of remarkably high oil prices), the relationship between resource dependence and growth tends to be negative.