
This paper investigates the connection between resource abundance and innovation, as a transmission mechanism that can elucidate part of the resource curse hypothesis; i.e. the observed negative impact of resource wealth on income growth. We develop a variation of the Ramsey-Cass-Koopmans model with endogenous growth to explain the phenomenon. In this model, consumers trade off leisure versus consumption, and firms trade off innovation efforts versus manufacturing. For this model, we show that an increase in resource income frustrates economic growth in two ways: directly by reducing work effort and indirectly by inducing a smaller proportion of the labor force to engage in innovation.
O31, Wirtschaftswachstum, ddc:330, Growth, Natural Resources, Growth, Innovation, O13, Q33, Natürliche Ressourcen, Natural resources, Endogenes Wachstumsmodell, Innovation, jel: jel:O31, jel: jel:O13, jel: jel:Q33
O31, Wirtschaftswachstum, ddc:330, Growth, Natural Resources, Growth, Innovation, O13, Q33, Natürliche Ressourcen, Natural resources, Endogenes Wachstumsmodell, Innovation, jel: jel:O31, jel: jel:O13, jel: jel:Q33
| selected citations These citations are derived from selected sources. This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically). | 9 | |
| popularity This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network. | Top 10% | |
| influence This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically). | Average | |
| impulse This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network. | Average |
