In Search of the Missing Resource Curse

The debate over the curse of natural resources has haunted developing countries for decades if not centuries. A review of existing empirical evidence suggests that the curse remains elusive. The fragile negative effect of natural resources on econo...

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Bibliographic Details
Main Authors:	Lederman, Daniel, Maloney, William F.
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ABSOLUTE VALUE AGRICULTURE ANNUAL GROWTH ANNUAL GROWTH RATE AVERAGE ANNUAL AVERAGE GROWTH AVERAGE SHARE BLACK MARKET BLACK MARKET PREMIUM CAPITAL ACCUMULATION CLASSICAL ECONOMICS COMMODITY PRICES COMPARATIVE ADVANTAGE CONSTANT PRICES CONSTANT RETURNS CONSTANT RETURNS TO SCALE CONTROL VARIABLES COUNTRY CHARACTERISTICS COUNTRY ECONOMETRIC EVIDENCE CREDIBILITY CROSS-COUNTRY DATA CROSS-COUNTRY INCOME DEBT DECISION MAKING DEPENDENT VARIABLE DEPENDENT VARIABLES DEPRECIATION DESCRIPTIVE STATISTICS DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DEVELOPMENT SUCCESSES DOMESTIC MARKET DOMESTIC PRICES DOWNWARD BIAS DRAG ON GROWTH DUMMY VARIABLE DUMMY VARIABLES DUTCH DISEASE DYNAMIC VERSION ECONOMETRIC ANALYSES ECONOMETRIC ANALYSIS ECONOMETRIC ISSUES ECONOMETRIC MODELS ECONOMETRICS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC REFORM ECONOMIC RENTS ECONOMIC RESEARCH ECONOMIC REVIEW ECONOMIC STUDIES ECONOMICS RESEARCH ECONOMIES OF SCALE ELASTICITY EMPIRICAL EVIDENCE EMPIRICAL GROWTH LITERATURE EMPIRICAL GROWTH MODEL EMPIRICAL LITERATURE EMPIRICAL MODELS EMPIRICAL WORK ENDOGENOUS GROWTH ENDOGENOUS VARIABLE EQUILIBRIUM EXCESS DEMAND EXCHANGE RATES EXPLANATORY VARIABLE EXPLANATORY VARIABLES EXPORTER EXPORTERS EXPORTS EXTERNALITY FACTOR ENDOWMENTS FINANCIAL MARKETS FISCAL POLICIES FIXED EFFECTS FOREIGN AID FOREIGN DEBT FUNDAMENTAL DETERMINANTS FUTURE RESEARCH GDP GDP PER CAPITA GOLD GROWTH CONTEXT GROWTH DATA GROWTH EMPIRICS GROWTH EQUATION GROWTH IMPACT GROWTH LITERATURE GROWTH MODEL GROWTH MODELS GROWTH PERFORMANCE GROWTH POTENTIAL GROWTH RATE GROWTH RATES GROWTH REGRESSIONS GROWTH THEORY HIGH GROWTH HIGH-INCOME COUNTRIES HUMAN CAPITAL IMPORT IMPORT TARIFFS IMPORTS INCOME DIFFERENCES INCOME GROWTH INDUSTRIALIZATION INSTITUTIONAL CONSTRAINTS INSTRUMENTAL VARIABLE INTERNATIONAL FINANCIAL STATISTICS INVESTMENT RATE KNOWLEDGE ECONOMY LABOR FORCE LABOR MARKET LABOR PRODUCTIVITY LAGGED DEPENDENT LANDLOCKED COUNTRIES LDCS LEVELS OF EXPORT LOCAL CURRENCY LONG-TERM GROWTH LOW-INCOME COUNTRIES MACRO VOLATILITY MACROECONOMIC POLICIES MACROECONOMIC POLICY MARGINAL PRODUCTIVITY MONETARY ECONOMICS MONOPOLIES MONOPOLY MONOPOLY RENTS NATIONAL INCOME NATURAL LOG NATURAL LOGARITHM NATURAL RESOURCE NATURAL RESOURCE ABUNDANCE NATURAL RESOURCES NEGATIVE CORRELATION NEGATIVE EFFECT NEGATIVE GROWTH NEGATIVE IMPACT NEGATIVE RELATIONSHIP NEGATIVE SIGN NEOCLASSICAL GROWTH NEOCLASSICAL GROWTH MODEL NEOCLASSICAL GROWTH THEORY NET EFFECT NET EXPORTS 0 HYPOTHESIS OBSERVED GROWTH OPTIMIZATION PER CAPITA GROWTH PER CAPITA INCOME POLICY REFORM POLICY RESEARCH POLICY REVIEW POLITICAL ECONOMY POLITICAL ECONOMY CHANNEL POLITICAL INSTITUTIONS POLITICAL STABILITY POSITIVE CORRELATION POSITIVE EFFECT POSITIVE EFFECTS POSITIVE GROWTH POSITIVE RELATIONSHIP POSITIVE SPILLOVER POSITIVE SPILLOVER EFFECTS POWER PARITY PRIVATE INVESTMENT PRIVATE SECTOR PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PRODUCTIVITY GROWTH PROPERTY RIGHTS PROTECTIONISM PUBLIC ENTERPRISES PUBLIC POLICIES PURCHASING POWER PURCHASING POWER PARITY QUANTILE REGRESSIONS RANDOM WALK RE-EXPORTS REAL EFFECTIVE EXCHANGE RATE REAL EXCHANGE RATE REAL GDP REAL GROWTH REGIONAL DUMMIES REGIONAL GROWTH REGRESSION RESULTS RELATIVE PRICES RENT SEEKING RESOURCE ENDOWMENTS SENSITIVITY ANALYSIS STANDARD DEVIATION STATISTICAL ANALYSIS TARIFF BARRIERS TOTAL EXPORTS TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TRADE DATA TRADE MOVEMENTS TRADE PATTERNS TRADE POLICY TRADE REGIMES TRADE RESTRICTIONS UNCERTAINTY WEALTH WORLD DEVELOPMENT INDICATORS
Online Access:	http://documents.worldbank.org/curated/en/2008/11/9993216/search-missing-resource-curse http://hdl.handle.net/10986/6901

Description
Summary:	The debate over the curse of natural resources has haunted developing countries for decades if not centuries. A review of existing empirical evidence suggests that the curse remains elusive. The fragile negative effect of natural resources on economic growth might be due to international heterogeneity in the effects of natural resources on economic growth, to the use of weak indicators of natural resources that might be unrelated to relative natural-resource endowments, or to the inability of econometric analysis based on international data to capture historical processes. This paper defends an empirical proxy for relative abundance of natural resources, which is based on standard growth theory. In turn, various econometric estimations are hopelessly deployed in the search for the missing resource curse. Some evidence suggests that natural resources might have large positive effects whose true magnitude remains unknown due to unresolved econometric issues.

In Search of the Missing Resource Curse

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