The curse of natural resources
This paper summarizes and extends previous research that has shown evidence of
a "curse of natural resources". Countries with great natural resource wealth tend
nevertheless to grow more slowly than resource-poor countries. This result is not easily
explained by other variables, or by alternative ways to measure resource abundance. This
paper shows that there is little direct evidence that omitted geographical or climate
variables explain the curse, or that there is a bias resulting from some other unobserved
growth deterrent. Resource-abundant countries tended to be high-price economies and,
perhaps as a consequence, these countries tended to miss-out on export-led growth.
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