Savings, Growth and the Resource Curse Hypothesis
- 1 November 2003
- journal article
- Published by Elsevier BV in World Development
- Vol. 31 (11), 1793-1807
- https://doi.org/10.1016/j.worlddev.2003.05.001
Abstract
An important connection between recent attempts to understand the determinants of economic growth and the measurement of sustainability is the finding of a negative and significant relationship between natural resource abundance and economic growth. This is the so-called resource curse hypothesis. Using cross-country regressions, we offer evidence that the curse may itself be a manifestation of the inability of governments to manage large resource revenues sustainably. In particular, these results offer another perspective on the resource curse hypothesis: the countries where growth has lagged are those where the combination of natural resource, macroeconomic and public expenditure policies have led to a low rate of genuine saving (net saving adjusted for resource depletion)Keywords
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