Economic growth, economic freedom, and the resource curse

This study examines the relationship between resource abundance, economic freedom, and economic growth. In a cross-sectional analysis, we find that an abundance of energy is only a "curse" if it affects economic freedom and investment. Controlling for economic freedom and investment, an ab...

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Bibliographic Details
Published inThe Journal of private enterprise Vol. 28; no. 1; p. 23
Main Authors Campbell, Noel D, Snyder, Thomas J
Format Journal Article
LanguageEnglish
Published Martin Association of Private Enterprise Education 01.10.2012
Subjects
Analysis
Corruption
Economic aspects
Economic development
Economic growth
Energy
Foreign aid
Growth rate
Human rights
Imports
Intervention
Manufacturing
Nationalization
Natural resources
Politics
Property rights
Protectionism
Regression analysis
Studies
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Summary:This study examines the relationship between resource abundance, economic freedom, and economic growth. In a cross-sectional analysis, we find that an abundance of energy is only a "curse" if it affects economic freedom and investment. Controlling for economic freedom and investment, an abundance of resources is not negatively related to growth but rather may increase economic growth. However, consistent with the literature, we find an abundance of natural resources has a negative impact on economic freedom and investment, which leads to an observed resource curse.
ISSN:0890-913X