The big push, natural resource booms and growth

• Published in: Journal of development economics Vol. 59; no. 1; pp. 43 - 76
• Main Authors: Sachs, Jeffrey D, Warner, Andrew M
• Format: Journal Article
• Language: English
• Published: Amsterdam Elsevier B.V 01.06.1999; Elsevier; North-Holland Pub. Co; Elsevier Sequoia S.A
• Series: Journal of Development Economics
• Subjects: Big push; Cross-national analysis; Development economics; Economic development; Economic models; Equilibrium; Factor analysis; Growth; Low income; Manycountries; Natural resource booms; Natural resources; Studies; Latin America; Q33; Natural resource booms; Big push; Growth; O4

A simple application of big-push reasoning suggests that natural resource booms can be important catalysts for development in poorer countries. In this paper we present evidence from seven Latin American countries that natural resource booms are sometimes accompanied by declining per-capita GDP. We...