Natural Resources and Economic Development: New Panel Evidence

Dong Hyeon Kim, Shu Chin Lin

Research output: Contribution to journalArticlepeer-review

96 Citations (Scopus)

Abstract

The question as to whether natural resources are a curse on economic growth and development is subject to considerable debates and remains controversial. Using heterogeneous panel cointegration techniques, this paper provides a fresh re-examination of the resource curse while allowing for cross-section heterogeneity and commonalities in the nexus between natural resource abundance and economic development. It finds, in a sample of developing countries, that economies endowed with abundant natural resources tend to develop more slowly than countries with scarce resources. Natural resources are, on average, a curse. However, there is considerable heterogeneity in the effects of resource abundance on economic development across countries, perhaps because of differences in the extent of government intervention, access to sound money, legal structures and the security of property rights, the degree of globalization, and/or corruption.

Original languageEnglish
Pages (from-to)363-391
Number of pages29
JournalEnvironmental and Resource Economics
Volume66
Issue number2
DOIs
Publication statusPublished - 2017 Feb 1

Bibliographical note

Publisher Copyright:
© 2015, Springer Science+Business Media Dordrecht.

Keywords

  • Economic development
  • Heterogeneous panel cointegration
  • Natural resources

ASJC Scopus subject areas

  • Economics and Econometrics
  • Management, Monitoring, Policy and Law

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