Resources, Agriculture and Economic Growth in Economies in Transition

By Thorvaldur Gylfason. Social Science Research Network, 2000

112 citations recorded by the source corpus.

This paper reviews some reasons why natural resource abundance and extensive agriculture appear to impede economic growth around the world. The paper presents empirical, cross-sectional evidence of various aspects of this relationship in the transition economies in Central and Eastern Europe and Central Asia since 1990. The essence of the argument is that heavy dependence on natural resources and agriculture may result in rent seeking (e.g., corruption) and policy failures (e.g., inflation) and may, moreover, discourage education, external trade, and genuine saving, thereby retarding economic growth. The paper concludes with a brief discussion of the policy implications of the analysis.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/16d43cb7056358a4b467b6c21ebc69cc45fc078f

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In Economics and Econometrics

1. E. Papyrakis
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4. Lili Yang
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Citations in the corpus

• Resource abundance and economic growth in the United States (2007, background): “There is also no overvaluation of the local currency (Sachs and Warner, 1995; Torvik, 2001; Gylfason, 2000, 2001a, b; Rodriguez and Sachs, 1999).”
• Energy consumption and economic growth: The case of oil exporting countries (2007, unknown): “Many studies support the ‘‘paradox of plenty’’ or ‘‘natural resource curse’’ (recent examples include Auty, 2001; Gylfason, 2000; 2001).”
• The resource curse hypothesis and its transmission channels (2004, background): “…characterized by increasing returns to scale and positive externalities, a decrease in scale of manufacturing decreases the productivity and profitability of investment, which accelerates further the decrease in investment(Sachs and Warner, 1995, 1999a; Gillis et al., 1996; Gylfason, 2000, 2001a).”
• Growth in Transition: What We Know, What We Don't and What We Should (2002, unknown): “17 Data availability still prevents a full assessment of the role of natural capital (Thorvaldur Gylfason 2000).”