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The shifting natural wealth of nations: The role of market orientation

Rabah Arezki (), Frederick (Rick) van der Ploeg () and Frederik Toscani

Journal of Development Economics, 2019, vol. 138, issue C, 228-245

Abstract: This paper explores the effect of market orientation on (known or available) natural resource wealth using a novel dataset of world-wide major hydrocarbon and mineral discoveries. Our empirical estimates based on a large panel of countries show that increased market orientation causes a significant increase in discoveries of natural resources. In a thought experiment where economies in Latin America and sub-Saharan Africa remain closed, they would have only achieved one quarter of the actual increase in discoveries they have experienced since the early 1990s. Our results call into question the commonly held view that known or available natural resource endowments are exogenous.

Keywords: Natural resources; Discoveries; Market orientation; Liberalization; Institutions; Endogenous reserves (search for similar items in EconPapers)
JEL-codes: E00 F3 F4 (search for similar items in EconPapers)
Date: 2019
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Working Paper: The shifting natural wealth of nations: the role of market orientation (2018) Downloads
Working Paper: The Shifting Natural Wealth of Nations: The Role of Market Orientation (2017) Downloads
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Handle: RePEc:eee:deveco:v:138:y:2019:i:c:p:228-245