Natural Resources: Curse or Blessing?



59

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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