Template-Type: ReDIF-Paper 1.0
Author-Name: Serino, L.A.
Author-Name-Last: Serino
Author-Name-First: Leandro
Title: An investigation of the competitiveness hypothesis of the resource curse
Abstract: In this paper I investigate the competitiveness explanation of the resource
 curse: to what extent slow growth in primary producer countries is related to
 the properties of this pattern of trade specialization. To address this hypothesis
 that has not been adequately explored in the literature, I estimate cross-country
 and system GMM panel data regressions, using a sample of 49 developed and
 developing countries.
 The empirical analysis explores most hypothetical explanations of the
 resource curse using a sensitivity approach and alternative trade specialization
 measures, elaborated with long-term trade disaggregated data, what constitutes
 an innovation regarding previous empirical work. The main findings of the
 paper are: i- that primary specialization hampers growth by reducing intraindustry
 trade and the dynamism of export demand, and ii- that it is the
 specialization in natural resource products with no or limited processing the
 one constraining economic growth, but not the specialization in industrialized
 resource products. Both facts support the competitiveness hypothesis of the
 resource curse and suggest that this growth paradox is linked to the limitations
 of resource abundant countries to diversify their tradable sector, and engage in
 the trade of products that facilitate the achievement of static and dynamic
 economies of scale.
Creation-Date: 2008-02-01
File-URL: https://repub.eur.nl/pub/18739/wp455.pdf
File-Format: application/pdf
Series: RePEc:ems:euriss
Number: 455
Classification-JEL: F43, O13, O47
Keywords: economic growth, pattern of trade specialization, resource curse, returns to scale.
Handle: RePEc:ems:euriss:18739