Distribution of natural resources, entrepreneurship, and economic development
Subtitle: growth dynamics with two elites
By: by Josef Falkinger, Volker Grossmann.
Contributors: Grossmann, Volker, 1971-
Series: Discussion paper ;; no. 1756; Discussion paper (Forschungsinstitut zur Zukunft der Arbeit : Online) ;; no. 1756
Publisher: IZA
Published: 2005
Place of publication: Bonn, Germany
Language: eng
Format: Electronic resource
Subjects: Natural resources.; Entrepreneurship.; Economic development.
Description: "This paper develops a model in which the interaction of entrepreneurial investments and power of the owners of land or other natural resources determines structural change and economic development. A more equal distribution of natural resources promotes structural change and growth through two channels: First, by weakening oligopsony power of owners and thereby easing entrepreneurial investments for credit-constrained individuals whose investment possibilities depend on their income earned in the primary goods sector. Second, by shifting the distribution of political power from resource owners towards the entrepreneurial elite, resulting in economic policy and institutions which are more conducive to entrepreneurship and productivity progress. We argue that these hypotheses are consistent with a large body of historical evidence from the Americas and with evidence on transition economies"--Forschungsinstitut zur Zukunft der Arbeit web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 9/28/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.