Curse and Boon: Natural Resources and Long-Run Growth in Currently Rich Economies

18 Pages Posted: 24 Aug 2010

See all articles by David Greasley

David Greasley

University of Edinburgh

Jakob B. Madsen

University of Copenhagen - Department of Economics

Abstract

Sceptics of the resource curse hypothesis highlight that many currently rich countries, including the United States of America initially had abundant natural resources. Using new 16-country post-1870 annual data and controlling for international spill-over in knowledge, we demonstrate a robust negative land resource-productivity trade-off among major Organisation for Economic Cooperation and Development economies. However, we find that abundance in mineral resources positively influenced productivity. Using insights from the new economic geography we argue that productivity-augmenting knowledge-related agglomeration effects are natural resource-specific and favoured mineral-rich countries.

Suggested Citation

Greasley, David and Madsen, Jakob Bruechner, Curse and Boon: Natural Resources and Long-Run Growth in Currently Rich Economies. Economic Record, Vol. 86, No. 274, pp. 311-328, September 2010, Available at SSRN: https://ssrn.com/abstract=1661387 or http://dx.doi.org/10.1111/j.1475-4932.2009.00617.x

David Greasley (Contact Author)

University of Edinburgh ( email )

Old College
South Bridge
Edinburgh, Scotland EH8 9JY
United Kingdom

Jakob Bruechner Madsen

University of Copenhagen - Department of Economics ( email )

Øster Farimagsgade 5
Bygning 26
1353 Copenhagen K.
Denmark

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