Resource-Abundance and Economic Growth in the U.S

Elissaios Papyrakis and Reyer Gerlagh
Additional contact information
Elissaios Papyrakis: IVM, Institute for Environmental Studies, Vrije Universiteit

No 2004.62, Working Papers from Fondazione Eni Enrico Mattei

Abstract: It is a common assumption that regions within the same country converge to approximately the same steady-state income levels. The so-called absolute convergence hypothesis focuses on initial income levels to account for the variability in income growth among regions. Empirical data seem to support the absolute convergence hypothesis for U.S. states, but the data also show that natural resource-abundance is a significant negative determinant of growth. We find that natural resource abundance decreases investment, schooling, openness, and R&D expenditure and increases corruption, and we show that these effects can fully explain the negative effect of natural resource abundance on growth.

Keywords: Natural resources; Growth; Transmission channels (search for similar items in EconPapers)
JEL-codes: C21 O13 O51 Q33 (search for similar items in EconPapers)
Date: 2004-04
New Economics Papers: this item is included in nep-dev and nep-env
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://feem-media.s3.eu-central-1.amazonaws.com/w ... oads/NDL2004-062.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fem:femwpa:2004.62

Access Statistics for this paper

More papers in Working Papers from Fondazione Eni Enrico Mattei Contact information at EDIRC.
Bibliographic data for series maintained by Alberto Prina Cerai ( this e-mail address is bad, please contact ).