Research consistently shows that natural resource dependence tends to be associated with lower economic growth. however, the studies typically focus on differences across nations or states. We fill a gap in the literature by testing the so-called resource curse at a more disaggregated county level. Our results show clear evidence that resource-dependent counties exhibit more anemic economic growth, even after controlling for state-specific effects, socio-demographic differences, initial income, and spatial correlation. A case study analysis of Maine and Wyoming, and the counties within, highlight the growth effects of specializing in natural resource extraction.
Keywords: natural resource curse; economic growth; convergence』
2. Data and econometric model
3. Theories of the resource curse and justification for the covariates
4. Discussion of the econometric results
5. A brief case study: Maine and Wyoming