Disaggregated analysis of the curse of natural resources in most natural resource-abundant countries

A vast body of literature examining the natural resource curse hypothesis (NCRH), the studies, by summing all types of natural resources, uses a single measure for the natural resource. To fill this gap, the study aims at testing the NRCH hypothesis by using the ARDL method and use the data distinguishing five different types of natural resources (coal, forests, minerals, natural gas, and oil) and covering the period from 1990 to 2017 for ten countries with different level of economic development, being measured by Human Development Index. The study finds mixed results. Firstly, the study finds very little evidence favoring adverse growth effects across each type of commodity. The results show no positive or negative impacts of natural resources on economic growth for developed economies (countries with high HDI scores). For countries with moderate and low HDI scores, we found mixed results. In particular, we find some evidence supporting NRCH for point-source resources for these two group countries (moderate and poor).

Automated summary

The study examines the impact of different types of natural resources on economic growth in ten countries with varying levels of economic development, finding that natural resources have no significant effect on economic growth in most developed countries, but may exhibit a resource curse effect in some moderate and low Human Development Index countries.