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Threshold Regressions for the Resource Curse

Abstract : This paper analyzes the behavior of cross-country growth rates with respect to resource abundance and dependence. We reject the linear model that is commonly-used in growth regressions in favor of a multiple-regime alternative. Using a formal sample-splitting method, we find that countries exhibit different behaviors with respect to natural resources depending on their initial level of development. In high-income countries, natural resources play only a minor role in explaining the differences in national growth rates. On the contrary, in low-income countries abundance seems to be a blessing but dependence restricts growth.
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https://halshs.archives-ouvertes.fr/halshs-01944214
Contributor : Elisabeth Lhuillier <>
Submitted on : Tuesday, September 29, 2020 - 11:22:02 AM
Last modification on : Monday, March 29, 2021 - 2:46:29 PM

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WP 2018 - Nr 41(v2).pdf
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  • HAL Id : halshs-01944214, version 2

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Nicolas Clootens, Djamel Kirat. Threshold Regressions for the Resource Curse. 2018. ⟨halshs-01944214v2⟩

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