The Relative Richness of the Poor? Natural Resources, Human Capital and Economic Growth

Are natural resources a blessing or a curse? The authors present a model in which natural resources have a positive effect on the level of income and a negative effect on its growth rate. The positive and permanent effect on income implies a welfare gain. There is a growth effect stemming from a com...

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Main Authors:	Bravo-Ortega, Claudio, de Gregorio, José
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2012
Subjects:	BENCHMARK BILATERAL TRADE CAPITAL ACCUMULATION CAPITAL FLOWS CAPITAL INCREASES CAPITAL MOBILITY CAPITAL STOCK CD CENTRAL BANK COMPARATIVE ADVANTAGES CONCEPTUAL FRAMEWORK CONSTANT RETURNS TO SCALE CONVERGENCE HYPOTHESIS DEBT DEPOSITS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC HISTORY ECONOMIC RENTS ECONOMIC STRUCTURES ECONOMICS ECONOMISTS ELASTICITY EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE ENDOWMENTS EQUILIBRIUM EXCHANGE RATE EXPLOITATION EXPORTS FISCAL POLICY FISHING FORESTRY FREE TRADE FUELS GDP GDP PER CAPITA GROWTH RATE GROWTH THEORY HUMAN CAPITAL IMPERFECT COMPETITION IMPORTS INCOME INCOME INEQUALITY INCOME LEVELS INTERNATIONAL TRADE LABOR FORCE LATIN AMERICAN MIGRATION MORTALITY NATURAL RESOURCE EXPLOITATION NATURAL RESOURCES NET EXPORTS PHYSICAL CAPITAL POLITICAL ECONOMY PRODUCTION FUNCTIONS PRODUCTIVITY PROFITABILITY REGRESSION ANALYSIS SANITATION SCALE EFFECTS TERMS OF TRADE TOTAL FACTOR PRODUCTIVITY TOTAL OUTPUT TRADE POLICIES
Online Access:	http://documents.worldbank.org/curated/en/2005/01/5606846/relative-richness-poor-natural-resources-human-capital-economic-growth http://hdl.handle.net/10986/8923

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recordtype	oai_dc
spelling	okr-10986-89232021-04-23T14:02:42Z The Relative Richness of the Poor? Natural Resources, Human Capital and Economic Growth Bravo-Ortega, Claudio de Gregorio, José BENCHMARK BILATERAL TRADE CAPITAL ACCUMULATION CAPITAL FLOWS CAPITAL INCREASES CAPITAL MOBILITY CAPITAL STOCK CD CENTRAL BANK COMPARATIVE ADVANTAGES CONCEPTUAL FRAMEWORK CONSTANT RETURNS TO SCALE CONVERGENCE HYPOTHESIS DEBT DEPOSITS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC HISTORY ECONOMIC RENTS ECONOMIC STRUCTURES ECONOMICS ECONOMISTS ELASTICITY EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE ENDOWMENTS EQUILIBRIUM EXCHANGE RATE EXPLOITATION EXPORTS FISCAL POLICY FISHING FORESTRY FREE TRADE FUELS GDP GDP PER CAPITA GROWTH RATE GROWTH THEORY HUMAN CAPITAL IMPERFECT COMPETITION IMPORTS INCOME INCOME INEQUALITY INCOME LEVELS INTERNATIONAL TRADE LABOR FORCE LATIN AMERICAN MIGRATION MORTALITY NATURAL RESOURCE EXPLOITATION NATURAL RESOURCES NET EXPORTS PHYSICAL CAPITAL POLITICAL ECONOMY PRODUCTION FUNCTIONS PRODUCTIVITY PROFITABILITY REGRESSION ANALYSIS SANITATION SCALE EFFECTS TERMS OF TRADE TOTAL FACTOR PRODUCTIVITY TOTAL OUTPUT TRADE POLICIES Are natural resources a blessing or a curse? The authors present a model in which natural resources have a positive effect on the level of income and a negative effect on its growth rate. The positive and permanent effect on income implies a welfare gain. There is a growth effect stemming from a composition effect. However, the authors show that this effect can be offset by having a large level of human capital. They test their model using panel data for the period 1970-90. They extend the usual specifications for economic growth regressions by incorporating an interaction term between human capital and natural resources, showing that high levels of human capital may outweigh the negative effects of the natural resource abundance on growth. The authors also review the historical experience of Scandinavian countries, which in contrast to Latin America, another region well-endowed with natural resources, shows how it is possible to grow fast based on natural resources. 2012-06-25T15:11:20Z 2012-06-25T15:11:20Z 2005-01 http://documents.worldbank.org/curated/en/2005/01/5606846/relative-richness-poor-natural-resources-human-capital-economic-growth http://hdl.handle.net/10986/8923 English en_US Policy Research Working Paper; No. 3484 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	BENCHMARK BILATERAL TRADE CAPITAL ACCUMULATION CAPITAL FLOWS CAPITAL INCREASES CAPITAL MOBILITY CAPITAL STOCK CD CENTRAL BANK COMPARATIVE ADVANTAGES CONCEPTUAL FRAMEWORK CONSTANT RETURNS TO SCALE CONVERGENCE HYPOTHESIS DEBT DEPOSITS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC HISTORY ECONOMIC RENTS ECONOMIC STRUCTURES ECONOMICS ECONOMISTS ELASTICITY EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE ENDOWMENTS EQUILIBRIUM EXCHANGE RATE EXPLOITATION EXPORTS FISCAL POLICY FISHING FORESTRY FREE TRADE FUELS GDP GDP PER CAPITA GROWTH RATE GROWTH THEORY HUMAN CAPITAL IMPERFECT COMPETITION IMPORTS INCOME INCOME INEQUALITY INCOME LEVELS INTERNATIONAL TRADE LABOR FORCE LATIN AMERICAN MIGRATION MORTALITY NATURAL RESOURCE EXPLOITATION NATURAL RESOURCES NET EXPORTS PHYSICAL CAPITAL POLITICAL ECONOMY PRODUCTION FUNCTIONS PRODUCTIVITY PROFITABILITY REGRESSION ANALYSIS SANITATION SCALE EFFECTS TERMS OF TRADE TOTAL FACTOR PRODUCTIVITY TOTAL OUTPUT TRADE POLICIES
spellingShingle	BENCHMARK BILATERAL TRADE CAPITAL ACCUMULATION CAPITAL FLOWS CAPITAL INCREASES CAPITAL MOBILITY CAPITAL STOCK CD CENTRAL BANK COMPARATIVE ADVANTAGES CONCEPTUAL FRAMEWORK CONSTANT RETURNS TO SCALE CONVERGENCE HYPOTHESIS DEBT DEPOSITS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC HISTORY ECONOMIC RENTS ECONOMIC STRUCTURES ECONOMICS ECONOMISTS ELASTICITY EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE ENDOWMENTS EQUILIBRIUM EXCHANGE RATE EXPLOITATION EXPORTS FISCAL POLICY FISHING FORESTRY FREE TRADE FUELS GDP GDP PER CAPITA GROWTH RATE GROWTH THEORY HUMAN CAPITAL IMPERFECT COMPETITION IMPORTS INCOME INCOME INEQUALITY INCOME LEVELS INTERNATIONAL TRADE LABOR FORCE LATIN AMERICAN MIGRATION MORTALITY NATURAL RESOURCE EXPLOITATION NATURAL RESOURCES NET EXPORTS PHYSICAL CAPITAL POLITICAL ECONOMY PRODUCTION FUNCTIONS PRODUCTIVITY PROFITABILITY REGRESSION ANALYSIS SANITATION SCALE EFFECTS TERMS OF TRADE TOTAL FACTOR PRODUCTIVITY TOTAL OUTPUT TRADE POLICIES Bravo-Ortega, Claudio de Gregorio, José The Relative Richness of the Poor? Natural Resources, Human Capital and Economic Growth
relation	Policy Research Working Paper; No. 3484
description	Are natural resources a blessing or a curse? The authors present a model in which natural resources have a positive effect on the level of income and a negative effect on its growth rate. The positive and permanent effect on income implies a welfare gain. There is a growth effect stemming from a composition effect. However, the authors show that this effect can be offset by having a large level of human capital. They test their model using panel data for the period 1970-90. They extend the usual specifications for economic growth regressions by incorporating an interaction term between human capital and natural resources, showing that high levels of human capital may outweigh the negative effects of the natural resource abundance on growth. The authors also review the historical experience of Scandinavian countries, which in contrast to Latin America, another region well-endowed with natural resources, shows how it is possible to grow fast based on natural resources.
format	Publications & Research :: Policy Research Working Paper
author	Bravo-Ortega, Claudio de Gregorio, José
author_facet	Bravo-Ortega, Claudio de Gregorio, José
author_sort	Bravo-Ortega, Claudio
title	The Relative Richness of the Poor? Natural Resources, Human Capital and Economic Growth
title_short	The Relative Richness of the Poor? Natural Resources, Human Capital and Economic Growth
title_full	The Relative Richness of the Poor? Natural Resources, Human Capital and Economic Growth
title_fullStr	The Relative Richness of the Poor? Natural Resources, Human Capital and Economic Growth
title_full_unstemmed	The Relative Richness of the Poor? Natural Resources, Human Capital and Economic Growth
title_sort	relative richness of the poor? natural resources, human capital and economic growth
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2005/01/5606846/relative-richness-poor-natural-resources-human-capital-economic-growth http://hdl.handle.net/10986/8923
_version_	1764406968150130688

The Relative Richness of the Poor? Natural Resources, Human Capital and Economic Growth

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