Economical - Political Analysis of Barriers of Natural Resources Abundance Effect on Economic Growth

Document Type : Research Paper

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Abstract

Some empirical studies show that some resource rich countries have a slow economic growth than resource poor countries, which in during late decade, this subject comes to an economic puzzle. In this paper is tried to recognize transmission from natural resources abundance to economic growth by economic and political factors. Some main channels of transmission from abundant natural resources to stunted economic growth are discussed: the Dutch disease, neglect of human capital, rent seeking, corruption and bad government. The findings of this study show that this transmission channels which cause to different countries with together is derived of bad governments. In other word, bad governments that often navigate by authoritative countries have inappropriate policy with natural resource abundance. Hence, we cannot conclude that natural resource abundant directly has a negative effect on economic growth; rather it is caused slow economic growth in some countries by bad government from the named channels of transmission.

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Quarterly Journal of Applied Theories of Economics
Volume 1, Issue 1 - Serial Number 1
September 2014
Pages 97-124

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