Skip to main content

Research Repository

Advanced Search

Neoclassical growth and the natural resource curse puzzle

Guilló, María Dolores; Pérez-Sebastián, Fidel


María Dolores Guilló

Fidel Pérez-Sebastián


We advance a novel mechanism that helps to explain the puzzling evidence on the natural resource curse. The new channel arises in a standard dynamic Heckscher-Ohlin model composed of small-open economies that take international output prices as given. Within this framework, a more capital-intensive primary sector implies that natural-resource abundant economies grow more slowly along the adjustment path. This effect might be only temporary because the natural input also affects long-run income, and not necessarily in the same direction as transitional growth. We produce quantitative results that show that the new mechanism can account for a significant fraction of the observed output growth gap between resource rich and resource poor U.S. states.


Guilló, M. D., & Pérez-Sebastián, F. (2015). Neoclassical growth and the natural resource curse puzzle. Journal of international economics, 97(2), 423-435.

Journal Article Type Article
Acceptance Date Jun 21, 2015
Online Publication Date Jun 28, 2015
Publication Date 2015-11
Deposit Date Oct 27, 2015
Publicly Available Date Nov 23, 2017
Journal Journal of international economics
Print ISSN 0022-1996
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 97
Issue 2
Pages 423-435
Keywords Natural resource curse; Economic growth; Dynamic Heckscher–Ohlin; Factor shares; Small open economy
Public URL
Publisher URL
Additional Information Authors' accepted manuscript of an article which has been published in: Journal of international economics, 2015, v.97, issue 2.


You might also like

Downloadable Citations