Arbeitspapier
Natural Resources, Investment and Long-Term Income
We study the negative correlation between natural resource-abundance and long-term income focusing on the savings-investment channel. We first present empirical evidence on this channel and then develop an OverLapping-Generations (OLG) model to study the issue. In this model, savings adjust downwards to income from natural resources, and investment in capital contributes to knowledge creation, a feature based on endogenous growth theory. We analyze the link from resource income future income through savings and investment. Natural resources have two counteracting effects on income. In the short term, resource wealth augments income, but in the long-term, it decreases income through a crowding-out effect on capital and knowledge. We discuss different scenarios under which the resource curse is most likely to take place.
- Language
-
Englisch
- Bibliographic citation
-
Series: Nota di Lavoro ; No. 87.2004
- Classification
-
Wirtschaft
Investment; Capital; Intangible Capital; Capacity
Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
- Subject
-
Natural resources
Growth
Investment
OLG models
Natürliche Ressourcen
Overlapping Generations
Endogenes Wachstumsmodell
Sparen
Investition
- Event
-
Geistige Schöpfung
- (who)
-
Papyrakis, Dlisraios
Gerlagh, Reyer
- Event
-
Veröffentlichung
- (who)
-
Fondazione Eni Enrico Mattei (FEEM)
- (where)
-
Milano
- (when)
-
2004
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Papyrakis, Dlisraios
- Gerlagh, Reyer
- Fondazione Eni Enrico Mattei (FEEM)
Time of origin
- 2004
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