Skip to Main content Skip to Navigation
Preprints, Working Papers, ...

Absorption capacity and Natural Resource Curse

Abstract : This paper investigates the impact of absorption capacity (i.e. the level of non-traded capital goods such as infrastructure and human capital) on the intensity of the natural resource curse. Using panel data for 105 countries over the period 1975-2014, I construct two indexes to proxy absorption capacity among countries. A growth regression model, estimated by IV-2SLS technique, shows that the natural resource curse is more intensive in countries with more absorption capacity constraints. Furthermore, based on the idea that some sorts of capital goods (e.g. infrastructure and human capital) can not be redeployed in major countries and they must be produced domestically (i.e. absorption capacity constraints), I put forward a simple two-sector framework, in line with Vander Ploeg and Venables (2013), to clarify the empirical finding
Document type :
Preprints, Working Papers, ...
Complete list of metadata

Cited literature [57 references]  Display  Hide  Download
Contributor : Caroline Bauer Connect in order to contact the contributor
Submitted on : Wednesday, November 18, 2020 - 4:26:56 PM
Last modification on : Friday, October 15, 2021 - 1:41:42 PM
Long-term archiving on: : Friday, February 19, 2021 - 8:18:08 PM


Files produced by the author(s)


  • HAL Id : halshs-03012661, version 1



Arsham Reisinezhad. Absorption capacity and Natural Resource Curse. 2020. ⟨halshs-03012661⟩



Record views


Files downloads