RENEWABLE NATURAL RESOURCES AND ENDOGENOUS GROWTH

J. Aznar-Márquez and José Ruiz-Tamarit

Macroeconomic Dynamics, 2005, vol. 9, issue 2, 170-197

Abstract: We study the sustainability of long-run growth in a two-sector economy where a renewable natural resource is exploited under private property rights. We obtain short- and long-run growth trajectories in closed form, examine transitional dynamics, and characterize convergence properties. We find conditions for sustainable long-run growth, which depend on the harvesting rate, and show that the speed of convergence decreases during transition. We identify a stronger version of Hartwick's rule and analyze parameter dependences for endogenous variables. Economic growth relies less on abundance or scarcity of natural resources than on the way they are managed.

Date: 2005
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Working Paper: Renewable Natural Resources and Endogenous Growth (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:cup:macdyn:v:9:y:2005:i:02:p:170-197_04

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