Is a country lucky to have natural resources? : a cross-country study of how mineral and fuel industries affect economic growth using panel data.

Hall, Greg. (2003). Is a country lucky to have natural resources? : a cross-country study of how mineral and fuel industries affect economic growth using panel data. Honours Thesis, School of Economics, The University of Queensland.

       
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Author Hall, Greg.
Thesis Title Is a country lucky to have natural resources? : a cross-country study of how mineral and fuel industries affect economic growth using panel data.
School, Centre or Institute School of Economics
Institution The University of Queensland
Publication date 2003-01-01
Thesis type Honours Thesis
Total pages 91
Language eng
Subjects 14 Economics
Formatted abstract
There is a body of empirical Literature finding that an abundance of natural resources actually hinders a country's economic growth. This is a counterintuitive result given the historical experience of countries such as Australia, Canada and the United States. Theories have also been developed to explain this empirical finding. One family of explanations incorporates the Dutch Disease into endogenous growth by assuming that an expansion of the resource sector changes the composition of output, which in turn determines productivity growth. The concern is that new theories are being developed without solid empirical evidence. Other prominent explanations for resource abundance hindering development include the Singer-Prebisch thesis, the prevalence external shocks and rent seeking due to the high and usually unequal distribution of the profits from these industries.

In this study a data set using 54 countries with annual observations from 1983 to 2000 is used. A key advantage over previous research is the use of a more precise measure of resource abundance. The total rent earned from a country's mineral and fuel industries is used. Another important feature of this study is the investigation of how an expansion of the resources sector may affect growth several years after the expansion has occurred, as it provides a test of the new theories that make use of the Dutch Disease. Minimal support for resource abundance detracting from economic growth is found. The volatility of exports is unimportant. Countries rich in natural resources are not more prone to Government corruption. Finally, the more recent explanations involving the Dynamic Dutch Disease are rejected.


Document type: Thesis
Collection: UQ Theses (non-RHD) - UQ staff and students only
 
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Created: Wed, 01 Dec 2010, 23:30:08 EST by Ning Jing on behalf of The University of Queensland Library