The Empirical Evidence Of Resource Curse In China

There is a traditional view that the wealth of a country heavily depends to its natural resources. lt means the more natural resources it owns, the wealthier this country is. But Dutch Disease challenges this idea, people begin to realize resource curse problem. Many international facts and research tell us that resource curse exist in many circumstances.So is there a resource curse in China's provincial level. We could find some clues from direct observation. And this paper tests this hypothesis with cross-section regression and panel data regression from empirical evidence. We find there is a resource curse in China.The first part of this paper contains introduction of resource curse problem. And put forward a hypothesis that it maybe exist in China's provincial level.The second part of this paper is literature review which summarizes international and China's research on resource curse problem. They are the differences of regional development in China, international theoretical and empirical research, research on the courses of resource curse and empirical test of resource curse in China's provincial level.The third part is empirical research. This paper analyses the relationship between economic development and resource abundance, with the proxy of resource taxes. From cross-section regression and panel data regression (1995 to 2005), we find there is a resource curse in China.The fourth part is some policy advices to avoid resource curse. They are to improve government work, update perspectives on economic development, industry diversification, enforce supervision and reduce corruption, rent-seeking behaviors.