Click here for search results

Economic Premise Note Series

Economic Premise logoThe Economic Premise note series is intended to summarize good practices and key policy findings on topics related to economic policy. The series is produced by the Poverty Reduction and Economic Management (PREM) Network of the World Bank.

SUBSCRIBE AND INTERACT

To receive e-mail notifications of new EP issues, fill out the form below:

Name:
Email:
   
Index of past issues
Contact us
Subscribe via RSS
Partner site Roubini.com

Questions for the Bank's trade logistics team? Join us June 4 for a live Q&A about the Logistics Performance Index on the new @WBPoverty Twitter channel! E-mail your questions or post them on Twitter with an #asklpi hash tag.

LATEST ISSUE: Economic Premise No. 83

Natural Capital and the Resource Curse imageBy Otaviano Canuto and Matheus Cavallari

  • PDF download
  • An abundance of natural resources is intuitively expected to be a blessing. Nonetheless, it has been argued for some decades that large endowments of natural resources -- oil, gas, and minerals in particular -- may actually become more of a curse, often leading to slow economic growth and redistributive struggles (including armed conflict). Over the years, vast empirical literature has addressed this "paradox." The literature has had to rely on proxies for natural resource abundance because of the lack of appropriate data, generating doubt on whether results would be similar if direct measures of natural wealth were available. This gap is now starting to be filled with the data series released by the World Bank (1997, 2006, 2011) on natural capital and other forms of countries' wealth. This note presents an analysis of these data to revisit some of the conclusions reached in the literature on the relationship between natural resource abundance and economic growth. The findings are in alignment with the view that there is no clear deterministic evidence of natural resource abundance as a curse or a blessing; therefore, the effect on a country depends on other determinants.

    RELATED BLOG: GROWTH AND CRISIS

    The Growth and Crisis blog brings you timely news, resources, tools, ideas and commentaries on issues related to the global economic crisis and growth.
    Recent entries:
    Collaborative Border Management: A New Approach to an Old Problem
    What Can We Learn from Islamic Finance?

    INDEX OF ECONOMIC PREMISE PAST ISSUES

    Show all Filter listing by topic: Global Economy International Trade Macroeconomic Policy and Public Finance Labor Markets, Poverty Reduction and Equity Governance and Public Sector Management Natural Resources and Development Migration and Remittances Technology Economics of Climate Change and Sustainable Growth Gender Millennium Development Goals and Poverty Reduction



    Permanent URL for this page: http://go.worldbank.org/EWC46VGN80