With Exhaustible Resources, Can A Developing Country Escape From The Poverty Trap?

Cuong Le van, Katheline Schubert and Tu-Anh Nguyen ()
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Tu-Anh Nguyen: Central Insitute of Economic Management - Central Insitute of Economic Management

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: This paper studies the optimal growth of a developing non-renewable natural resource producer. It extracts the resource from its soil, and produces a single consumption good with man-made capital. More- over, it can sell the extracted resource abroad and use the revenues to buy an imported good, which is a perfect substitute of the domes- tic consumption good. The domestic technology is convex-concave, so that the economy may be locked into a poverty trap. We show that the extent to which the country will escape from the poverty trap depends, besides the interactions between its technology and its impatience, on the characteristics of the resource revenue function, on the level of its initial stock of capital, and on the abundance of the natural resource.

Keywords: optimal growth; non-renewable resource; convex-concave technology; poverty trap; resource curse (search for similar items in EconPapers)
Date: 2010-11
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00470655v1
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Citations: View citations in EconPapers (22)

Published in Journal of Economic Theory, 2010, 145 (6), pp.2435-2447. ⟨10.1016/j.jet.2010.07.005⟩

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Related works:
Journal Article: With exhaustible resources, can a developing country escape from the poverty trap? (2010)
Working Paper: With Exhaustible Resources, Can A Developing Country Escape From The Poverty Trap? (2010)
Working Paper: With Exhaustible Resources, Can A Developing Country Escape From The Poverty Trap? (2010)
Working Paper: With Exhaustible Resources, Can A Developing Country Escape From The Poverty Trap? (2007)
Working Paper: With exhaustible resources, can a developing country escape from the poverty trap? (2007)
Working Paper: With exhaustible resources, can a developing country escape from the poverty trap? (2007)
Working Paper: With exhaustible resources, can a developing country escape from the poverty trap? (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:halshs-00470655

DOI: 10.1016/j.jet.2010.07.005

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