Friday, July 13, 2007

Reseach Paper: International Economics of Natural Resources and Growth

A question often asked by students is how does a country's endowment of natural resources affect economic growth? As a cornerstone of Marcoeconomics theories of growth from Solow to the more recent endogenous growth theory are studied extensively

What is often ignored is the relationship with natural resources. With the "scarcity" of resources being increasingly highlighted in the popular press this new research paper is timely.

A review of the recent empirical evidence is included which may be of interest.

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"The International Economics of Natural Resources and Growth"
CESifo Working Paper Series No. 1994

Contact: THORVALDUR GYLFASON
University of Iceland - Faculty of Economics and
Business Administration, Centre for Economic Policy
Research (CEPR), CESifo (Center for Economic
Studies and Ifo Institute for Economic Research)
Email: gylfason@hi.is

Auth-Page: http://ssrn.com/author=52281

Full Text: http://ssrn.com/abstract=992682

ABSTRACT: This article is in three parts. First, it briefly
describes the contribution of natural resources to economic
growth around the world, pondering the question whether an
abundance of natural resources is a blessing or a curse. Second,
an attempt is made to provide a glimpse of recent empirical
evidence that can be brought to bear on this question. Third, the
article discusses the experience of Norway, the world's third
largest oil exporter. To date, Norway has appeared to be mostly
free of the worrisome symptoms, such as the Dutch disease, that
have afflicted many other countries with abundant natural
resources.

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