The Shifting Natural Wealth of Nations : The Role of Market Orientation
This paper explores the effect of market orientation on (known) natural resource wealth using a novel dataset of world-wide major hydrocarbon and mineral discoveries. Consistent with the predictions of a two-region model, the empirical estimates ba...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/920431531329592002/The-shifting-natural-wealth-of-nations-the-role-of-market-orientation http://hdl.handle.net/10986/29993 |
| Summary: | This paper explores the effect of market
orientation on (known) natural resource wealth using a novel
dataset of world-wide major hydrocarbon and mineral
discoveries. Consistent with the predictions of a two-region
model, the empirical estimates based on a large panel of
countries show that increased market orientation causes a
significant increase in discoveries of natural resources. In
a thought experiment whereby economies in Latin America and
sub-Saharan Africa remained closed, they would have only
achieved one quarter of the actual increase in discoveries
they have experienced since the early 1990s. The results
call into question the commonly held view that natural
resource endowments are exogenous. |
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