Is Natural Resource Abundance A Curse Or A Blessing

Natural resources has long been considered an extremely important factor ineconomic growth. But throughout the world, Nigeria, Venezuela, Russia and othercountries with rich natural resource wealth, has been shown signs of bad economy.United States, Germany and the United Kingdom relying on abundant naturalresources had been developed countries. Also Botswana, Norway and the United ArabEmirates having abundant resources are in full enjoyment of the economic benefitsfrom resource wealth. In contrast, some areas of poor resources, such as Hong Kong,Japan, Korea, as well as some European countries, are showing a better economicperformance. From the observation of the domestic level, the economic performanceof resource-abundant western regions are far behind on the eastern region lacking ofresources. On these above circumstances, the presence of natural resources foreconomic performance in the end is a curse or a blessing, it has become a hot topic intoday’s scholars study. How Natural resources affect the economic development. Inorder to effectively prevent the conductive pathway of resource curse, use naturalresources reasonably and correctly and efficiently, and promote the comprehensivedevelopment of the economy. It is important to figure out the transmissionmechanism.Firstly, this paper introduces the typical examples at home and abroad, decides tohave a analysis from two perspectives of non-institution and institution. Under thenon-institutional perspective, the transmission mechanism of natural resource on theeconomy is anti-industrialization from Dutch disease, lack of learning by doing, andresource price volatility. Analysis on institutional perspective is the key part of thisarticle, it thinks that resource curse mainly due to the resource rent-seeking behavior,resource economics reliance mechanism, obscure of property rights. In the empiricalpart, the level of market used to measure he institutional variable, selected panel dataof years2000-2011in31provinces to test, and get the result that resource cursephenomenon does exist in the level of inter-provinces on our country. On the furtheranalysis, it calculated sort the degree of influence of each transmission mechanism ofresources in the economy: human capital, institutional quality, technologicalinnovation, openness and physical capital.Therefore, based on theoretical and empirical research, two aspects of humancapital and institutions around, this article about how to prevent and alleviate the situation of the resource curse put forward specific policy recommendations. I hope tooffer some available advices to the availability of resources in the economicdevelopment of the region.