Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/75741
Authors: 
Gylfason, Thorvaldur
Year of Publication: 
2001
Series/Report no.: 
CESifo Working Paper 530
Abstract: 
This paper reviews the relationship between natural resources and economic growth, and stresses how natural capital tends to crowd out foreign capital, social capital, human capital, andphysical capital, thereby impeding economic growth across countries and presumably also over time. Specifically, the paper presents empirical evidence that nations with abundant natural capital tend to have (a) less trade and foreign investment, (b) more corruption, (c) less education, and (d) less domestic investment than other nations that are less well endowed with, or less dependent on, natural resources. This matters for growth because empirical evidence also indicates that trade, honesty, education, and investment are all positively and significantly related to economic growth across countries.
Subjects: 
Natural resources
economic growth
Document Type: 
Working Paper

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