Journal
ENVIRONMENTAL & RESOURCE ECONOMICS
Volume 57, Issue 3, Pages 323-343Publisher
SPRINGER
DOI: 10.1007/s10640-013-9673-8
Keywords
Natural resource curse; Economic growth; China; Institutional quality; Resource abundance; Policy change; Functional effect
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The resource curse has been mainly studied using cross-country samples. In this paper we analyze a cross-province sample from one country: China. We focus on the interplay between resource abundance, institutional quality, and economic growth, using two different measures of resource abundance (a stock: resource reserves; and a flow: resource revenues), and employing various econometric approaches including varying coefficient models. We find that resource abundance has a positive effect on economic growth at the provincial level in China between 1990 and 2008, an effect that depends nonlinearly on institutional quality (1995 confidence in courts). The 'West China Development Drive' policy, initiated in 2000, caused substantial changes, which we investigate through a comparative panel-data analysis.
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