Path Selection For Economic Growth Of Guizhou Province Based On “Resource Curse” Hypothesis

Favorable resource endowment is material basis of economic development,which is an important view of tradition economics. However, areas with abundant natural resources have been falling into the traps of sluggish and even stagnant economic growth since the mid to late 20 th century. In contrast, economy has developed vigorously in areas with scanty resources. Such puzzling economic phenomenon has enabled economists to review relationships between abundant natural resources and economic growth. As a result, the “resource curse” hypothesis has been put forward. It means that abundant natural resources aren’t fully favorable conditions, but limits to economic growth of a country or an area. As the “resource curse” hypothesis was put forward, challenges have been posed to traditional theoretical views that economic growth could be facilitated by developing natural resources, while far-reaching impacts have been imposed on economic growth and sustainable development in resource-based provinces of China.After summing up previous research findings, the “resource curse” hypothesis is introduced to practical economic growth of Guizhou Province with relatively abundant resources, in hope of better interpreting an intrinsic cause of backward economic development in that province with the hypothesis. First of all, relationships between resource endowment and economic development in Guizhou Province are investigated. After a range of observations on initial data and empirical tests from the provincial perspective, the phenomena of “resource curse” are eventually confirmed to exist in Guizhou Province. Next, inner mechanism restricting economic growth in the resource industry of Guizhou Province is deeply analyzed according to theories and data. The results suggest that the economic growth of Guizhou Province is restricted by its resource industry due to geographical factors, the Dutch disease,“crowding out” effect as well as market failure and rent-seeking resulting from weakening institutions. At last, to make Guizhou Province get rid of the “resource curse” and transform its resource advantages into economic ones, pertinent paths are put forward to break the curse and facilitate economic development of the province.