Do Countries Always Remain in the State of Resource Curse or Resource Blessing?

Sonika Sharma, Arif Billah Dar and M. Karthik

World Economics, 2026, vol. 27, issue 1, 63-100

Abstract: This paper investigates the linkage between natural resources and economic growth, in light of the Resource Curse-Resource Blessing debate, by considering financial development and trade openness as additional determinants for G20 nations. As a novelty, the study uses Autoregressive Distributive Lag Model on a quadratic specification to test whether countries remain in state of resource curse (resource blessing) or make a transition to resource blessing (resource curse) state. The empirical results reveal that countries, except Brazil and Saudi Arabia, shift from resource blessed states to resource curse states. Indonesia monotonically experiences resource curse. Financial development and trade openness also contribute positively to economic growth.

Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:wej:wldecn:970

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