Natural Resource Abundance and Economic Growth

  title={Natural Resource Abundance and Economic Growth},
  author={Jeffrey D. Sachs and Andrew M. Warner},
  journal={Economic Growth},
One of the surprising features of modern economic growth is that economies with abundant natural resources have tended to grow less rapidly than natural-resource-scarce economies. In this paper we show that economies with a high ratio of natural resource exports to GDP in 1971 (the base year) tended to have low growth rates during the subsequent period 1971-89. This negative relationship holds true even after controlling for variables found to be important for economic growth, such as initial… 

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