Abstract

This research project examines the phenomenon of the resource curse-the inverse relationship between natural resource abundance and economic growth seen in developing countries since 1965. A large body of empirical research detects a negative statistical relationship between natural resource abundance and slow economic growth in developing countries during the latter part of the twentieth century. The resource curse argues that natural resources interact with various social, political, and economic factors, and the modification of these factors results in slower economic growth. This paper aims to investigate the validity of the resource curse. In contrast with many previous studies, the results of this paper do not find a statistically significant relationship between natural resources and economic growth, and therefore, the results do not support the existence of a resource curse. This study also explores some possible theoretical and empirical problems present in previous studies.

Disciplines

Economics

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Economics Commons

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