Threshold Regressions for the Resource Curse

Nicolas Clootens and Djamel Kirat

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Abstract: This paper analyzes the behavior of cross-country growth rates with respect to resource abundance and dependence. We reject the linear model that is commonly-used in growth regressions in favor of a multiple-regime alternative. Using a formal sample-splitting method, we find that countries exhibit different behaviors with respect to natural resources depending on their initial level of development. In high-income countries, natural resources play only a minor role in explaining the differences in national growth rates. On the contrary, in low-income countries abundance seems to be a blessing but dependence restricts growth.

Keywords: resource curse; growth; threshold regressions; natural resources (search for similar items in EconPapers)
Date: 2018-11
New Economics Papers: this item is included in nep-ene, nep-env and nep-gro
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01944214v2
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Related works:
Journal Article: Threshold regressions for the resource curse (2020)
Working Paper: Threshold regressions for the resource curse (2020)
Working Paper: Threshold Regressions for the Resource Curse (2018)
Working Paper: Threshold Regressions for the Resource Curse (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:halshs-01944214

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