Resource Surse,System And Income Gap

The “resource curse” is an economic term referring to the fact that,over a longer period of time,countries rich in natural resources have become economically backward due to excessive dependence on resources.Chinese scholars have done a lot of empirical research on the phenomenon of resource curses.Some scholars believe that the resource curse phenomenon exists in China,and some scholars believe that natural resources and economic growth are not intrinsically related.When using different indicators,adding different control variables,and using different methods will make a huge change in the estimation results.Does the resource curse phenomenon exist in our country? Based on this,the article uses microdata to re-examine the phenomenon of “resource curse” in China.On the basis of sorting out the existing research,the paper uses CFPS(2010)microdata to further study the relationship between resources and income and the underlying mechanism.Whether or not the “resource curse” phenomenon exists in our country and how the underlying mechanism of action is,the article first uses CFPS(2010)microdata for natural resources and residents on the basis of combing domestic and international literature on “resource curse”.The relationship between household per capita income and the underlying transmission mechanism was re-examined.The main conclusions are as follows:(1)The resource curse exists at the village(Habitat)level,and the per capita income of local residents with natural resources is 19%-23% lower than that of the regions without resources.(2)The mechanism test found that resources "curse" economic development by squeezing out education,squeezing out innovation,and degrading the quality of the system.Among them,system quality deterioration is the most core mechanism of the "resource curse",which can explain 75 % of the entire effect.Extrusion of 13 and 12 per cent of education and innovation,respectively;(3)Extrusion education can explain 13% of the overall effect.At the village level,resources are squeezed out of crowding out of education,leaving resources at home level to neglect education and children to not work hard.Resources lead to less education investment,lower education emphasis;(4)Based on the sample study of urban and rural areas,the article finds that the resource is more crowded out to the cities than the rural areas by 2.5 times;(5)The curse effect of resources is further manifested in expanding the local income disparity.The curse effect of resources on low-income groups is 5.2 times that of high-income groups,and the Gini coefficient in resources-owned areas is 5.7% above the average.This paper uses self-help sampling method,standardized coefficient method and cluster analysis method to test robustness,and uses propensity matching score method(PSM)to identify cause and effect.The above microanalytical methods all show that the above relationship is a robust causal relationship.Natural resources have always been the "blessings" of economic development in one place.In the end,due to unreasonable development and institutional protection resources,they have turned into a "curse" of economic development.The identity of the local government agent makes it the “first action group” for the implementation of the system.Therefore,the local government should create an open,transparent and fair environment,avoiding the rent-seeking behavior of resource rents,and giving full play to the positive role of local governments in allocating resources.