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1. Engaging cosystems

Author

Duncan, Susan, Papers, Jerry, Franzen, Woody, and Otto, Pat

Published
2006

2. Threshold regressions for the resource curse

Author

Nicolas Clootens, Djamel Kirat, Aix-Marseille Sciences Economiques (AMSE), École des hautes études en sciences sociales (EHESS)-Aix Marseille Université (AMU)-École Centrale de Marseille (ECM)-Centre National de la Recherche Scientifique (CNRS), Laboratoire d'Économie d'Orleans [UMR7322] (LEO), Université d'Orléans (UO)-Université de Tours (UT)-Centre National de la Recherche Scientifique (CNRS), This paper has been partly funded by the Agence Nationale de la Recherche (France) under grants Labex VOLTAIRE (ANR-10-LABX-100-01) and ANR-17-EURE-0020, ANR-10-LABX-0100,VOLTAIRE,Geofluids and Volatil elements – Earth, Atmosphere, Interfaces – Resources and Environment(2010), ANR-17-EURE-0020,AMSE (EUR),Aix-Marseille School of Economics(2017), École des hautes études en sciences sociales (EHESS)-École Centrale de Marseille (ECM)-Centre National de la Recherche Scientifique (CNRS)-Aix Marseille Université (AMU), Laboratoire d'Économie d'Orleans (LEO), Université d'Orléans (UO)-Université de Tours-Centre National de la Recherche Scientifique (CNRS), ANR-10-LABX-100-01/10-LABX-0100,VOLTAIRE,Geofluids and Volatil elements – Earth, Atmosphere, Interfaces – Resources and Environment(2010), ANR: 17-EURE-0020,AMSE (EUR),Aix-Marseille School of Economics(2017), Lhuillier, Elisabeth, Laboratoires d'excellence - Geofluids and Volatil elements – Earth, Atmosphere, Interfaces – Resources and Environment - - VOLTAIRE2010 - ANR-10-LABX-0100 - LABX - VALID, Aix-Marseille School of Economics - - AMSE (EUR)2017 - ANR-17-EURE-0020 - EURE - VALID, and Centre National de la Recherche Scientifique (CNRS)-Université de Tours-Université d'Orléans (UO)

Subjects
Economics and Econometrics, Resource (biology), Natural resource economics, growth, 05 social sciences, Linear model, Development, JEL: O - Economic Development, Innovation, Technological Change, and Growth/O.O1 - Economic Development/O.O1.O13 - Agriculture • Natural Resources • Energy • Environment • Other Primary Products, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, Natural resource, non-renewable resources, Resource curse, Abundance (ecology), 0502 economics and business, threshold regressions, Economics, JEL: Q - Agricultural and Natural Resource Economics • Environmental and Ecological Economics/Q.Q3 - Nonrenewable Resources and Conservation/Q.Q3.Q33 - Resource Booms, JEL: O - Economic Development, Innovation, Technological Change, and Growth/O.O1 - Economic Development/O.O1.O11 - Macroeconomic Analyses of Economic Development, 050202 agricultural economics & policy, 050207 economics, [SHS.ECO] Humanities and Social Sciences/Economics and Finance, natural resources, Non-renewable resource, resource curse, General Environmental Science
Abstract

This paper analyzes the behavior of cross-country growth rates with respect to resource abundance and dependence. We reject the linear model that is commonly used in growth regressions in favor of a multiple-regime alternative. Using a formal sample-splitting method, we find that countries exhibit different behaviors with respect to natural resources depending on their initial level of development. In high-income countries, natural resources play only a minor role in explaining the differences in national growth rates. On the contrary, in low-income countries, abundance seems to be a blessing but dependence restricts growth.

Published
2020