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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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Contributor : Elisabeth Lhuillier <>
Submitted on : Tuesday, September 29, 2020 - 2:11:17 PM
Last modification on : Saturday, October 3, 2020 - 3:30:06 AM

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Nicolas Clootens, Djamel Kirat. Threshold Regressions for the Resource Curse. Environment and Development Economics, Cambridge University Press (CUP), In press, ⟨10.1017/S1355770X20000297⟩. ⟨halshs-02952519⟩



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