Sources of Economic Growth in Models with Non-Renewable Resources

Hongsilp Sriket and Richard M. H. Suen

MPRA Paper from University Library of Munich, Germany

Abstract: This paper re-examines the possibility of endogenous long-term economic growth in neoclassical models with non-renewable resources. Instead of using a Cobb-Douglas production function as in most existing studies, we consider a general form in which physical capital is functionally separable from labour and natural resources. It is shown that if the elasticity of substitution between labour and resources is identical to one, then long-term economic growth is endogenous. But if this elasticity is not equal to one, as suggested by empirical studies, then long-term economic growth is entirely driven by an exogenous technological factor.

Keywords: Non-Renewable Resources; Endogenous Growth; Elasticity of Substitution. (search for similar items in EconPapers)
JEL-codes: O13 O41 Q32 (search for similar items in EconPapers)
Date: 2019-09-27
New Economics Papers: this item is included in nep-ene, nep-env, nep-gro and nep-ore
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https://mpra.ub.uni-muenchen.de/96544/1/MPRA_paper_96544.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/106221/8/MPRA_paper_106221.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/108910/15/MPRA_paper_108910.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/112023/1/MPRA_paper_112023.pdf revised version (application/pdf)

Related works:
Journal Article: Sources of economic growth in models with non-renewable resources (2022)
Working Paper: Sources of Economic Growth in Models with Non-Renewable Resources (2019)
Working Paper: Sources of Economic Growth in Models with Non-Renewable Resources
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