Explaining Growth Failures: On the Impact of Natural Resource Endowments

This study examines growth successes and failures across countries and notes the latter’s perplexing predominance among ex ante low- and lower middle-income economies. The discussion on the most plausible explanations proposed for this phenomenon within the development economics literature leads to the forming of an empirical investigation that proposes an explanation for this persistence of underdevelopment following the importance of natural resource endowment type on growth, particularly in the presence of lack of social cohesion. The results show that, in the absence of social cohesion, the nature of natural resource abundance bears great significance, since a natural resource endowment characterised by extractive resources is more negatively correlated with growth than a resource endowment that is agricultural or poor. The robustness of this result is tested across a number of growth regression specifications within the literature and thus the adverse development and growth effect that extractive natural resource endowment together with lack of social cohesion creates can be concluded to offer a relatively robust explanation for the natural resource curse observed in a number of resource rich economies.

This high quality scientific investigation is released to the global market as the seventh contribution in the Classical Science Monographs -series, which contains academically valuable contributions by Dr. Maiju Johanna Perälä that bear undeniable relevance for the advancement of the humanity globally.

Publication information

Author: Dr. Maiju Johanna Perälä
eBook: 152 pages
Publisher: Authentic Vegan Publishing (April 14, 2020)
Language: English
ISBN: 978-952-7376-55-3
Product Dimensions: 6 x 9 in (15.24 x 22.86 cm)
eBook Format: PDF (Kindle compatible with enhanced navigation features)