Lederman, DanielMaloney, William F.2012-06-012012-06-012008-11https://hdl.handle.net/10986/6901The debate over the curse of natural resources has haunted developing countries for decades if not centuries. A review of existing empirical evidence suggests that the curse remains elusive. The fragile negative effect of natural resources on economic growth might be due to international heterogeneity in the effects of natural resources on economic growth, to the use of weak indicators of natural resources that might be unrelated to relative natural-resource endowments, or to the inability of econometric analysis based on international data to capture historical processes. This paper defends an empirical proxy for relative abundance of natural resources, which is based on standard growth theory. In turn, various econometric estimations are hopelessly deployed in the search for the missing resource curse. Some evidence suggests that natural resources might have large positive effects whose true magnitude remains unknown due to unresolved econometric issues.CC BY 3.0 IGOABSOLUTE VALUEAGRICULTUREANNUAL GROWTHANNUAL GROWTH RATEAVERAGE ANNUALAVERAGE GROWTHAVERAGE SHAREBLACK MARKETBLACK MARKET PREMIUMCAPITAL ACCUMULATIONCLASSICAL ECONOMICSCOMMODITY PRICESCOMPARATIVE ADVANTAGECONSTANT PRICESCONSTANT RETURNSCONSTANT RETURNS TO SCALECONTROL VARIABLESCOUNTRY CHARACTERISTICSCOUNTRY ECONOMETRIC EVIDENCECREDIBILITYCROSS-COUNTRY DATACROSS-COUNTRY INCOMEDEBTDECISION MAKINGDEPENDENT VARIABLEDEPENDENT VARIABLESDEPRECIATIONDESCRIPTIVE STATISTICSDEVELOPING COUNTRIESDEVELOPMENT ECONOMICSDEVELOPMENT POLICYDEVELOPMENT SUCCESSESDOMESTIC MARKETDOMESTIC PRICESDOWNWARD BIASDRAG ON GROWTHDUMMY VARIABLEDUMMY VARIABLESDUTCH DISEASEDYNAMIC VERSIONECONOMETRIC ANALYSESECONOMETRIC ANALYSISECONOMETRIC ISSUESECONOMETRIC MODELSECONOMETRICSECONOMIC ACTIVITYECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC PERFORMANCEECONOMIC REFORMECONOMIC RENTSECONOMIC RESEARCHECONOMIC REVIEWECONOMIC STUDIESECONOMICS RESEARCHECONOMIES OF SCALEELASTICITYEMPIRICAL EVIDENCEEMPIRICAL GROWTH LITERATUREEMPIRICAL GROWTH MODELEMPIRICAL LITERATUREEMPIRICAL MODELSEMPIRICAL WORKENDOGENOUS GROWTHENDOGENOUS VARIABLEEQUILIBRIUMEXCESS DEMANDEXCHANGE RATESEXPLANATORY VARIABLEEXPLANATORY VARIABLESEXPORTEREXPORTERSEXPORTSEXTERNALITYFACTOR ENDOWMENTSFINANCIAL MARKETSFISCAL POLICIESFIXED EFFECTSFOREIGN AIDFOREIGN DEBTFUNDAMENTAL DETERMINANTSFUTURE RESEARCHGDPGDP PER CAPITAGOLDGROWTH CONTEXTGROWTH DATAGROWTH EMPIRICSGROWTH EQUATIONGROWTH IMPACTGROWTH LITERATUREGROWTH MODELGROWTH MODELSGROWTH PERFORMANCEGROWTH POTENTIALGROWTH RATEGROWTH RATESGROWTH REGRESSIONSGROWTH THEORYHIGH GROWTHHIGH-INCOME COUNTRIESHUMAN CAPITALIMPORTIMPORT TARIFFSIMPORTSINCOME DIFFERENCESINCOME GROWTHINDUSTRIALIZATIONINSTITUTIONAL CONSTRAINTSINSTRUMENTAL VARIABLEINTERNATIONAL FINANCIAL STATISTICSINVESTMENT RATEKNOWLEDGE ECONOMYLABOR FORCELABOR MARKETLABOR PRODUCTIVITYLAGGED DEPENDENTLANDLOCKED COUNTRIESLDCSLEVELS OF EXPORTLOCAL CURRENCYLONG-TERM GROWTHLOW-INCOME COUNTRIESMACRO VOLATILITYMACROECONOMIC POLICIESMACROECONOMIC POLICYMARGINAL PRODUCTIVITYMONETARY ECONOMICSMONOPOLIESMONOPOLYMONOPOLY RENTSNATIONAL INCOMENATURAL LOGNATURAL LOGARITHMNATURAL RESOURCENATURAL RESOURCE ABUNDANCENATURAL RESOURCESNEGATIVE CORRELATIONNEGATIVE EFFECTNEGATIVE GROWTHNEGATIVE IMPACTNEGATIVE RELATIONSHIPNEGATIVE SIGNNEOCLASSICAL GROWTHNEOCLASSICAL GROWTH MODELNEOCLASSICAL GROWTH THEORYNET EFFECTNET EXPORTS0 HYPOTHESISOBSERVED GROWTHOPTIMIZATIONPER CAPITA GROWTHPER CAPITA INCOMEPOLICY REFORMPOLICY RESEARCHPOLICY REVIEWPOLITICAL ECONOMYPOLITICAL ECONOMY CHANNELPOLITICAL INSTITUTIONSPOLITICAL STABILITYPOSITIVE CORRELATIONPOSITIVE EFFECTPOSITIVE EFFECTSPOSITIVE GROWTHPOSITIVE RELATIONSHIPPOSITIVE SPILLOVERPOSITIVE SPILLOVER EFFECTSPOWER PARITYPRIVATE INVESTMENTPRIVATE SECTORPRODUCTION FUNCTIONPRODUCTION FUNCTIONSPRODUCTIVITYPRODUCTIVITY GROWTHPROPERTY RIGHTSPROTECTIONISMPUBLIC ENTERPRISESPUBLIC POLICIESPURCHASING POWERPURCHASING POWER PARITYQUANTILE REGRESSIONSRANDOM WALKRE-EXPORTSREAL EFFECTIVE EXCHANGE RATEREAL EXCHANGE RATEREAL GDPREAL GROWTHREGIONAL DUMMIESREGIONAL GROWTHREGRESSION RESULTSRELATIVE PRICESRENT SEEKINGRESOURCE ENDOWMENTSSENSITIVITY ANALYSISSTANDARD DEVIATIONSTATISTICAL ANALYSISTARIFF BARRIERSTOTAL EXPORTSTOTAL FACTOR PRODUCTIVITYTOTAL FACTOR PRODUCTIVITY GROWTHTRADE DATATRADE MOVEMENTSTRADE PATTERNSTRADE POLICYTRADE REGIMESTRADE RESTRICTIONSUNCERTAINTYWEALTHWORLD DEVELOPMENT INDICATORSWorld Bank10.1596/1813-9450-4766