 Further investigation of natural resources and economic growth: Do natural resources depress economic growth?Lkhagva Gerelmaa and Koji Kotani Resources Policy, 2016, vol. 50, issue C, 312-321 Abstract: One of the surprising findings in the economic literature is that natural resource-rich countries tend to have slower economic growth than resource-poor countries do, i.e., the natural resource curse and Dutch disease. In this paper, we revisit these issues by applying quantile regression and using the most updated data. The results demonstrate that resource-intensive countries in 1970 suffered from slower economic growth than did resource-poor countries over the next 20 years, consistent with Sachs and Warner (1995, 1997, 2001). However, contrary to our initial expectation, we find that the natural resource abundance in 1990 had positive impacts on economic growth between 1990 and 2010. We further test Dutch disease theory, and the result contradicts the Dutch disease hypothesis. Overall, our analysis suggests that in the period from 1970 to 1990, the hypotheses of a resource curse and Dutch disease hold. However, in the period from 1990 to 2010, these hypotheses no longer hold because manufacturing sectors have grown sufficiently even in resource-rich countries. Keywords: Natural resources; Economic growth; Resource curse; Dutch disease (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:50:y:2016:i:c:p:312-321 DOI: 10.1016/j.resourpol.2016.10.004 Access Statistics for this article Resources Policy is currently edited by R. G. Eggert More articles in Resources Policy from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.