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Curse and Boon: Natural Resources and Long‐Run Growth in Currently Rich Economies *
Author(s) -
GREASLEY DAVID,
MADSEN JAKOB B.
Publication year - 2010
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.2009.00617.x
Subject(s) - resource curse , natural resource , productivity , economies of agglomeration , economics , curse , natural resource economics , resource (disambiguation) , mineral resource classification , economic geography , economic growth , ecology , computer network , geochemistry , sociology , geology , anthropology , computer science , biology
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.