The Resource Curse Exorcised: Evidence from a Panel of Countries
Brock Smith ()
No 165, OxCarre Working Papers from Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford
This paper evaluates the impact of major natural resource discoveries since 1950 on GDP per capita and its proximate causes. Using panel fixed-effects estimation and resource discoveries in countries that were not previously resource-rich as a plausibly exogenous source of variation, I find a positive effect on GDP per capita levels following resource exploitation that persists in the long term. Results vary significantly between OECD and non-OECD treatment countries, with effects concentrated within the non-OECD group. I further test GDP effects with synthetic control analysis on each individual treated country, yielding results consistent with the average effects found with the fixed-effects model. Productivity, capital formation and education were also positively affected by resource discovery, while growth accounting analysis suggests productivity gains were a major distinguishing factor in GDP effects.
Keywords: natural resource curse; economic growth; growth regressions; growth accounting; oil (search for similar items in EconPapers)
JEL-codes: F12 Q37 (search for similar items in EconPapers)
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Journal Article: The resource curse exorcised: Evidence from a panel of countries (2015)
Working Paper: The Resource Curse Exorcised: Evidence from a Panel of Countries (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:oxf:oxcrwp:165
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