EconPapers    
Economics at your fingertips  
 

Oil curse, economic growth and trade openness

Monoj Majumder (), Mala Raghavan () and Joaquin Vespignani ()

Energy Economics, 2020, vol. 91, issue C

Abstract: An important economic paradox in the economic literature is that countries with abundant natural resources are poor in terms of real gross domestic product per capita. This paradox, known as the ‘resource curse’, is contrary to the conventional intuition that natural resources help to improve economic growth and prosperity. Using panel data for 95 countries, this study revisits the resource curse paradox in terms of oil resources abundance for the period 1980–2017. In addition, the study examines the role of trade openness in influencing the relationship between oil abundance and economic growth. The study finds trade openness is a possible avenue to reduce the resource curse, in our sample, trade openness reduces oil curse by around 25%. Trade openness allows countries to obtain competitive prices for their resources in the international market and access advanced technologies to extract resources more efficiently. Therefore, natural resource–rich economies can reduce the resource curse by increasing exposure to international trade.

Keywords: Oil rents; Real GDP per capita; Trade openness; Dynamic panel data model (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S014098832030236X
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Oil curse, economic growth and trade openness (2019) Downloads
Working Paper: Oil Curse, Economic Growth and Trade Openness (2019) Downloads
Working Paper: Oil Curse, Economic Growth and Trade Openness (2019) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:91:y:2020:i:c:s014098832030236x

DOI: 10.1016/j.eneco.2020.104896

Access Statistics for this article

Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2021-07-20
Handle: RePEc:eee:eneeco:v:91:y:2020:i:c:s014098832030236x