The phenomenon of low economic growth in resource-rich regions is recognized as the “resource curse”. This research empirically shows the existence of a resource curse at the U.S. state level. Of two widely offered explanations for the resource curse, our analysis supports the crowding-out effect in the U.S. rather than the institutional explanation. Investment and R&D are the two main crowded-out factors.
Details
Title
Crowding-out Effect or Institutions? The Resource Curse Revisited with an Investigation of U.S. States
Record Identifier
https://ageconsearch.umn.edu/record/142974
PURL Identifier
http://purl.umn.edu/142974
Language
English
Total Pages
21
JEL Codes
Q20 Q30 O13 O51 C23
Note
Selected Paper prepared for presentation at the Southern Agricultural Economics Association(SAEA) Annual Meeting, Orlando, Florida, 3‐5 February 2013