Resource abundance: A curse or blessing?

Vladimir Popov
Authors registered in the RePEc Author Service: Виктор Меерович Полтерович

Working Papers from United Nations, Department of Economics and Social Affairs

Abstract: Is resource abundance a blessing or a curse? Typically, in resource rich countries, domestic fuel prices are lower, and energy intensity of GDP is higher. But they have higher investment in R&D and fixed capital stock, larger foreign exchange reserves and more inflows of FDI. They also have lower budget deficits and lower inflation. These are conducive for long term growth. We also find that in resource rich countries, real exchange rate is generally higher, accumulation of human capital is slower and institutions are worse, especially if they were not strong initially, which are detrimental for growth.

Keywords: Resource curse; economic growth; inequality; institutions; real exchange rate; budget deficit; inflation; investment; industrial policy (search for similar items in EconPapers)
JEL-codes: O25 O43 Q32 Q43 Q48 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2010-06
New Economics Papers: this item is included in nep-cba
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25)

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Persistent link: https://EconPapers.repec.org/RePEc:une:wpaper:93

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