Natural Resources: Curse or Blessing?

Table 1: Effects of resource dependence and institutional quality on economic growth

Annual growth in real GDP per capita	Sachs and Warner (1997a)	Based on data in Sachs and Warner (1997b)___________	Mehlum, Moene and Torvik (2005a)
Initial income___________	-1.76 (8.56)	-1.28 (6.65)	-1.26 (6.70)
Openness____________	1.33 (3.35)____________	1.45 (3.36)_________	1.66 (3.87)____________
Resource dependence	-10.57 (7.01)_________	-6.69 (5.43)	-14.34 (4.21)__________
Rule of law___________	0.36 (3.54)____________	-	-
Institutional quality	-	0.6 (0.64)	-1.3 (1.13)
Investments___________	1.02 (3.45)	0.15 (6.73)_________	0.16 (7.15)____________
Interaction term________	-	-	15.40 (2.40)___________
Number of countries	71	87	87__________________
Adjusted R²__________	0.72_________________	0.69_______________	0.71___________________

Table 2: Marginal effects of different resources on growth for varying institutional quality

	Primary exports share of GDP	Ores and metals exports as share of GDP	Mineral production as share of GNP	Production of gold, silver and diamonds as share of GDP
Worst institutions_______	-0.548	-0.946	-1.127	-1.145
Average institutions_______	-0.378	0.425	0.304	0.279
Average + one s.d. institutions	-0.288	1.152	1.062	1.183
Best institutions	-0.228	1.629	1.560	1.776

Note: Institutional quality is an average of the indexes for bureaucracy, corruption, rule of law,
risk of expropriation of private investment and repudiation of contracts by government.

Source: Boschini, et. al. (2007)

Table 3: Total, natural, produced and intangible capital, 2000
— $ per capita and percentage shares —

Income group	Natural capital	Produced capital	Intangible capital	Total wealth	Natural capital share	Produced capital share	Intangible capital share
Low-income countries	1,925	1,174	4,434	7,532	26%	16%	59%
Middle- income countries	3,496	5,347	18,773	27,616	13%	19%	68%
High-income OECD countries	9,531	76,193	353,339	439,063	2%	17%	80%
World	4,011	16,850	74,998	95,860	4%	18%	78%

Note: All dollars at nominal exchange rates. Oil states excluded.
Source: World Bank (2006, Table 2.1)

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