Thorvaldur Gylfason

Nature, Power, and Growth

2001. Vol. 5. No. 4. P. 459–491 [issue contents]

This paper examines the relationship between the abundance of natural resources and economic growth in different regions of the world. Here are some new results.  The paper shows that the main reasons that production based on natural resources can constrain economic growth are associated with the "Dutch syndrome", insufficient care about education, the desire to extract economic rent and unsuccessful economic policies. It is noted that in a large number of countries between 1965 and 1998, the share of the primary sector in employment is inversely proportional to the levels of exports, domestic and foreign investment and education, and is directly related to external debt, import protection, corruption and income inequality. In addition, cross-sectional data show that the primary sector's share of employment is inversely proportional to per capita economic growth in different countries. However, this is not objectively predetermined. For economic growth, it does not seem to be the abundance of natural resources per se that is important, but the quality of their management and economic governance and institutions as a whole.

Citation: Gylfason Thorvaldur (2001) Priroda, energiya i ekonomicheskiy rost [Nature, Power, and Growth]. HSE Economic Journal , vol. 5, no 4, pp. 459-486 (in Russian)
Rambler's Top100 rss