Natural Resources and Global Misallocation

Alexander Monge-Naranjo, Juan Sanchez and Raul Santaeulalia-Llopis ()

American Economic Journal: Macroeconomics, 2019, vol. 11, issue 2, 79-126

Abstract: Are production factors allocated efficiently across countries? To differentiate misallocation from factor intensity differences, we provide a new methodology to estimate output shares of natural resources based solely on current rent flows data. With this methodology, we construct a new dataset of estimates for the output shares of natural resources for a large panel of countries. In sharp contrast with Caselli and Feyrer (2007), we find a significant and persistent degree of misallocation of physical capital. We also find a remarkable movement toward efficiency during the last 35 years, associated with the elimination of interventionist policies and driven by domestic accumulation.

JEL-codes: E22 E23 O13 Q21 Q31 Q32 (search for similar items in EconPapers)
Date: 2019
Note: DOI: 10.1257/mac.20170381
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Citations: View citations in EconPapers (14)

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Related works:
Working Paper: Natural Resources and Global Misallocation (2017)
Working Paper: Natural Resources and Global Misallocation (2015)
Working Paper: Natural Resources and Global Misallocation (2015)
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