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James, Alexander
Journal of development economics, 05/2015, Letnik: 114Journal Article
A surprising feature of resource-rich economies is slow growth. It is often argued that natural-resource production impedes development by creating market or institutional failures. This paper establishes an alternative explanation—a slow-growing resource sector. A declining resource sector is disproportionately reflected in resource-dependent countries. Additionally, there is little evidence that resource dependence impedes growth in non-resource sectors. More generally, this paper illustrates the importance of considering industry composition in cross-country growth regressions. •Resource-dependence is a robust determinant of growth.•Sector-specific growth rates are not robustly correlated with resource dependence.•Cross-country growth heterogeneity largely reflects sector-growth heterogeneity.•Resource-dependent countries tend to grow slowly when the international price of the resource falls.
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JCR | SNIP | JCR | SNIP | JCR | SNIP | JCR | SNIP |
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