Threshold Regressions for the Resource Curse

Abstract : This paper analyzes the behavior of cross-country growth rates with respect to resource abundance and dependence. We reject the linear model that is commonly-used in growth regressions in favor of a multiple-regime alternative. Using a formal sample-splitting method, we find that countries exhibit different behaviors with respect to natural resources depending on their initial level of development. In high-income countries, natural resources play only a minor role in explaining the differences in national growth rates. On the contrary, in low-income countries abundance seems to be a blessing but dependence restricts growth.
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https://halshs.archives-ouvertes.fr/halshs-01944214
Contributor : Charles Lai Tong <>
Submitted on : Tuesday, December 4, 2018 - 2:48:56 PM
Last modification on : Wednesday, March 6, 2019 - 2:38:14 PM

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  • HAL Id : halshs-01944214, version 1

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Nicolas Clootens, Djamel Kirat. Threshold Regressions for the Resource Curse. 2018. ⟨halshs-01944214⟩

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