The Relationship Between Natural Resources And Economic Growth

Vast in China, the characteristics of natural resources is that the total amount is huge, but the per capita resources amount is small. The nature reserves around is uneven,and the natural resource abundance gap is huge. Resources are important to the national economic development and the basic guarantee for the sustainable development of society. Resources are the necessity of resources for human society development and are also the basic indicators of a country’s comprehensive national strength. The majority of existing research that conducted under the frame of the linear model could not give reasonable explanation simultaneously of the two contradictory phenomena resource blessing and resource curse. Hence, under the retrospective analysis of the present literature and the statistical observation of the empirical facts, this article postulate the hypothesis of conditional resource curse, i.e. the relationship between natural resource and economic growth has a reversed “U” shape curve, to offer an account for the problem. Using the FGLS method, this article examines the nonlinear impact of the natural resource on the economic growth, based on the panel data of the 31 provincial level administrative regions in the 20 years from 1993-2012, and proves that the reverse “U” shape relationship does exist. Also, through the FGLS method, this article discusses the cause of the formation of the resource curse and the pertinence suggestion to the circumvention of the curse. To effectively avoid the resource curse, we should establish effective factor market, optimize the price mechanism, explore the integration of "production" way, promote scientific and technological progress, strengthen the regulation of heavy industry, promote energy conservation and emissions reduction, promote the transformation and upgrading of manufacturing’s leading role, intensify propaganda to improve public participation.