A Revisit of “Curse of Natural Resources” Hypothesis: An Approach Based on Endogeneity
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| Title | A Revisit of “Curse of Natural Resources” Hypothesis: An Approach Based on Endogeneity
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| Author | Zhang Derong Yang Hui Lu Yunhang |
| Organization | School of Economics, Xiamen University,School of Public Administration, Shandong University of Finance and Economics,School of Economics, Zhejiang Gongshang University |
| Email | derongzhang@126.com |
| Key Words | Curse of Resources; Endogeneity; Transmission Channel |
| Abstract | Many empirical studies focused on “the curse of natural resources” have been implemented, most of which confirm this hypothesis. But our simulation shows that the endogeneity of the independent variable can cause serious estimation bias, which calls for a more serious treatment of this problem. After a discussion of three kinds of endogeneity that may exist in the empirical studies, we implement an empirical study concerning the relationship between energy abundance and economic growth using the Chinese data in the provincial level. The results show that energy abundance has a very significant positive effect on economic growth in China and part of this effect is passed through fixed capital investment. |
| Serial Number | WP252 |
| Time | 2012-06-12 |
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