The Role of Natural Resources and Geography for Productivity in Developed Countries

Sakari Lähdemäki, Eero Lehto and Eero Mäkynen

No 320, Working Papers from Työn ja talouden tutkimus LABORE, Labour Institute for Economic Research LABORE

Abstract: This paper considers how natural resources and geography impact labour productivity either directly or through R&D-intensity, education level and product structure. The country set considered includes 42 developed and developing countries. By geography, we mean population size, internal density and geographical centrality with respect to activity outside a country’s borders. According to our results, of natural resources forest area and gas and oil reserves have mostly a negative total effect on labour productivity. Agricultural area and minerals, instead, support productivity. Of geographical variables internal density raises R&D-intensity and via it productivity. Geographical centrality and population size, instead, negatively impacts productivity.

Keywords: productivity; natural resources; geography; R&D-intensity; education; consumer goods share of manufacturing (search for similar items in EconPapers)
JEL-codes: O13 O40 O47 O57 Q00 R12 (search for similar items in EconPapers)
Pages: 71 pages
Date: 2018-04-18
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Persistent link: https://EconPapers.repec.org/RePEc:pst:wpaper:320

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