Natural Resources, Growth and Spatially-Based Development : A View of the Literature

This paper reviews natural resource "curse", economic growth and related spatial issues literature. Empirical work has established the presence of a negative relationship between growth and natural resource richness. Economic theory suggests a range of explanations: 1) resource booms may i...

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Main Authors:	Nelson, B., Behar, A.
Language:	English
Published:	Washington, DC: World Bank 2012
Subjects:	World Development Report 2009
Online Access:	http://hdl.handle.net/10986/9175

id	okr-10986-9175
recordtype	oai_dc
spelling	okr-10986-91752021-04-23T14:02:44Z Natural Resources, Growth and Spatially-Based Development : A View of the Literature Nelson, B. Behar, A. World Development Report 2009 This paper reviews natural resource "curse", economic growth and related spatial issues literature. Empirical work has established the presence of a negative relationship between growth and natural resource richness. Economic theory suggests a range of explanations: 1) resource booms may induce exchange rate appreciation which squeezes growth enhancing sectors; 2) resource rich economies may be subject to price volatility and trade shocks, both ofr which are destabilizing; 3) natural capital appears to crowd out human capital and may foster inequality; 4) natural resource sectors can feature a weak configuration of linkages, limiting the extent of positive feedback to the rest of the economy; and 5) poor policymaking contributes to their under-performance. Policy prescriptions are relatively clear with respect to the short run macroeconomic handling of resource rents. With regard to institutional dimensions, checks and balances on government activity appear to have high returns in resource rich countries. Spatially based and cluster initiatives may help foster productive linkages, technological upgrading, quality certification and market access. 2012-06-26T15:40:28Z 2012-06-26T15:40:28Z 2009 http://hdl.handle.net/10986/9175 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC: World Bank Africa Latin America & Caribbean
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	World Development Report 2009
spellingShingle	World Development Report 2009 Nelson, B. Behar, A. Natural Resources, Growth and Spatially-Based Development : A View of the Literature
geographic_facet	Africa Latin America & Caribbean
description	This paper reviews natural resource "curse", economic growth and related spatial issues literature. Empirical work has established the presence of a negative relationship between growth and natural resource richness. Economic theory suggests a range of explanations: 1) resource booms may induce exchange rate appreciation which squeezes growth enhancing sectors; 2) resource rich economies may be subject to price volatility and trade shocks, both ofr which are destabilizing; 3) natural capital appears to crowd out human capital and may foster inequality; 4) natural resource sectors can feature a weak configuration of linkages, limiting the extent of positive feedback to the rest of the economy; and 5) poor policymaking contributes to their under-performance. Policy prescriptions are relatively clear with respect to the short run macroeconomic handling of resource rents. With regard to institutional dimensions, checks and balances on government activity appear to have high returns in resource rich countries. Spatially based and cluster initiatives may help foster productive linkages, technological upgrading, quality certification and market access.
author	Nelson, B. Behar, A.
author_facet	Nelson, B. Behar, A.
author_sort	Nelson, B.
title	Natural Resources, Growth and Spatially-Based Development : A View of the Literature
title_short	Natural Resources, Growth and Spatially-Based Development : A View of the Literature
title_full	Natural Resources, Growth and Spatially-Based Development : A View of the Literature
title_fullStr	Natural Resources, Growth and Spatially-Based Development : A View of the Literature
title_full_unstemmed	Natural Resources, Growth and Spatially-Based Development : A View of the Literature
title_sort	natural resources, growth and spatially-based development : a view of the literature
publisher	Washington, DC: World Bank
publishDate	2012
url	http://hdl.handle.net/10986/9175
_version_	1764408746091479040

Natural Resources, Growth and Spatially-Based Development : A View of the Literature

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