The Geographical Dimension of the Development Effects of Natural Resources
Format of Original
Environmental and Resource Economics
We study the contribution of natural resource intensity to long-term development along different dimensions: per-capita income, institutional quality, and education. We allow natural resources to affect these dimensions differently in different regions of the world. The evidence suggests that natural resources are generally a positive driver of development, but in Sub-Saharan Africa (SSA) their contribution is almost negligible, if not even negative. We explain these cross-regional differences with the fact that in SSA more than anywhere else large resource endowments are combined with a particularly bad disease environment. Some historical evidence and formal econometric results support this hypothesis.
Chowdhury, Abdur and Carmignani, Fabrizio, "The Geographical Dimension of the Development Effects of Natural Resources" (2012). Economics Faculty Research and Publications. 247.