The Research Of Resource Curse Transmission Mechanism In Western China

With a long time, natural resource has been considered to be the material basis of economic growth and good natural resource endowment is considered to be a prerequisite for a region’s economic development. However, the economic growth of many resource-rich areas is slow and even in stagnation situation since the mid-20th century. With the putting forward of Resource curse hypothesis, a large number of economists started to pay attention to the impact of natural resources on economic growth.From the perspective of domestic development, the rate of economic growth of the resource-rich western region has been long lagged far behind in the eastern part. Some domestic scholars have been researched the existence of the phenomenon of the resource curse and the transmission mechanism of the resource curse. On the basis of previous studies, this paper uses the Chinese provincial panel data to verify the existence of the resource curse. And then, the results shows that the resource curse effect clearly exists in Chinese provincial level and natural resources has been obstructed the economic development in a certain extent before the large-scale development of the western region. While, after the large-scale development of the western region, as the increasing of the country western investment, the natural resources on economic growth has played a catalytic role, which seems the disappearance of the resource curse effect on the surface. But in the long run, economic growth is to reduce the input of the manufacturing sector, the enhancement of human capital and technological progress for the price. At the same time, this will weaken the effect of the institution, which definitely leads to fatigue of the long-term economic growth and makes the formation of greater resources curse.With the construction of the resource curse coefficient, this article analyzes the transmission mechanism of the resource curse in the western part of the country by using western10provincial units of the1991-2010western region panel data. The result confirms the resource curse impacts on the economic development of the western region through crowding-out effect and institutional weakening effect. The implementation of the western development to some extent alleviates the effect of region’s resource curse, meanwhile the improvement of the level of investment, human capital improvement, improvement of market-oriented and openness to some extent reduces the effect of the resource curse. But this effect is significant presence, especially the crowding out of investment in science and technology being significantly exacerbated by trends. At the same time, this investment-led western region sustainability of economic growth needs further study.Based on the above theory, this paper proposes the countermeasures and suggestions to crack the resource curse, in order to provide policy advice basis of resource development and economic healthy growth of the western region to achieve a sustainable economic development.