Natural Resources, Education, and Economic Development

Thorvaldur Gylfason

No 2594, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: Economic growth since 1965 has varied inversely with the share of natural capital in national wealth across countries. Four main channels of transmission from abundant natural resources to stunted economic development are discussed: (a) the Dutch disease, (b) rent seeking, (c) overconfidence, and (d) neglect of education. Public expenditure on education relative to national income, expected years of schooling for girls, and gross secondary-school enrolment are all shown to be inversely related to the share of natural capital in national wealth across countries. Natural capital appears to crowd out human capital, thereby slowing down the pace of economic development.

Keywords: Natural resources; Economic development (search for similar items in EconPapers)
JEL-codes: O11 (search for similar items in EconPapers)
Date: 2000-10
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Citations: View citations in EconPapers (13)

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Journal Article: Natural resources, education, and economic development (2001)
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