The relative richness of the poor? Natural resources, human capital, and economic growth
By: Claudio Bravo-Ortega and Jose de Gregorio.
Contributors: De Gregorio, Jose; World Bank.
Series: Policy research working paper ;; 3484; Policy research working papers (Online) ;; 3484.
Publisher: World Bank
Published: 2005
Place of publication: [Washington, D.C
Language: eng
Format: Electronic resource
Subjects: Natural resources -- Mathematical models.; Human capital -- Mathematical models.; Income -- Mathematical models.; Poor -- Mathematical models.; Economic development -- Mathematical models.
Description: "Are natural resources a blessing or a curse? Bravo-Ortega and De Gregorio 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.  This paper is a product of the Office of the Chief Economist, Latin America and the Caribbean Region"--World Bank web site.
Notes: Includes bibliographical references.
Title from PDF file as viewed on 1/11/2005.
Also available in print.
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Mode of access: World Wide Web.