Natural Resource Abundance and Economic Growth: A Case Study of Pakistan

Hani Fatima,Fatima Jinnah, Zainulabiden Malik


Natural resources, including both renewable and nonrenewable when being abundant are generally considered to have a positive relation with a county’s economic growth. This paper examines the effects of natural resource abundance on economic growth. It measures the trend that resource-poor areas are better off than resource-rich areas. The story behind the effect of natural resources on economic growth is a complex one, which typical growth regressions do not capture well. Mostly evidence suggests that resource abundance has a negative effect on economic growth of any country. This study will help us to explain why the above mentioned negative relationship between natural resources and economic growth exists and how this negativity can be controlled.

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