Empirical Analysis Of The "Resource Curse" Phenomenon In Shanxi Province

In traditional economics, the more natural resources a country possesses, the fastereconomy developes. However, with the emergence of the "Dutch disease" and the oil crisis,this view is questioned. The rich natural resources don’t bring the host region a sustainableeconomic growth, to a certain extent, hinder its economic development. That is the economicgrowth rate of many countries with abundant natural resource is slower than the lacks yet.Then, when Auty studied the issue on economic development of the mining country in1993,this strange phenomenon was called the "resource curse".From the domestic research situation, the effect of resource curse exists atinter-provincial level in our country. The distribution of our natural resources in the west ismore than in the east, however, the status quo of economic development is that the economicdevelopment speed in the eastern is much faster than in the western region. Such as inresource-rich Shanxi, Yunnan and other areas, the economic growth rate lags far behindresource scarcity regions of Shanghai, Jiangsu, etc. Most scholars believe that the ShanxiProvince in china is the typical region of resource curse effect. So the resource curse effect inShanxi Province is how to produce? What influences resource curse effect have on localeconomic development and the level of people’s life? In view of the above problems, thispaper mainly elaborates them from the following several aspects.First, I summarizes the research status of the resource curse at home and abroad from itsthe empirical test and the transmission mechanism, then illustrate simply its relevant conceptsand theory in the paper. Secondly, based on relevant data for1978to2010in Shanxi Provinceand China, I make the statistical description of the resource curse effect in Shanxi Provinceusing resource abundance index (RAI) and energy intensity (E). Then the quantitativeanalysis, which bases on the multiple regression model with appropriate indicators, isconducted for the resource curse effect of Shanxi Province. It concludes that there is resourcecurse effect in the Shanxi Province. Again, exploring the conduction mechanism of theresource curse effect in Shanxi Province, I know the transmission mechanism of resourcecurse effect in Shanxi Province following: the volatility of terms of trade, the crowding-outeffect on the manufacturing sector, the extrusion of the technological innovation, theextrusion of the education, etc. At last, I discuss briefly the countermeasures to evade theresource curse effect of Shanxi Province from five aspects.