Threshold regressions for the resource curse

Nicolas Clootens and Djamel Kirat

Environment and Development Economics, 2020, vol. 25, issue 6, 583-610

Abstract: This paper analyzes the behavior of cross-country growth rates with respect to resource abundance and dependence. We reject the linear model that is commonly used in growth regressions in favor of a multiple-regime alternative. Using a formal sample-splitting method, we find that countries exhibit different behaviors with respect to natural resources depending on their initial level of development. In high-income countries, natural resources play only a minor role in explaining the differences in national growth rates. On the contrary, in low-income countries, abundance seems to be a blessing but dependence restricts growth.

Date: 2020
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Related works:
Working Paper: Threshold regressions for the resource curse (2020)
Working Paper: Threshold Regressions for the Resource Curse (2018)
Working Paper: Threshold Regressions for the Resource Curse (2018)
Working Paper: Threshold Regressions for the Resource Curse (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:cup:endeec:v:25:y:2020:i:6:p:583-610_4

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