Natural Capital x Resource Curse (Canuto & Cavallari)

Natural capital and the resource curse by Otaviano Canuto and Matheus Cavallari published by World Bank (05/2012). “An abundance of natural resources is intuitively expected to be a blessing. Nonetheless, it has been argued for some decades that large endowments of natural resources – oil, gas, and minerals in particular – may actually become more of a curse, often leading has addressed this ‘paradox’…This note presents an analysis of these data to revisit some of the conclusions reached in the literature on the relationship between natural resource abundance and economic growth. The findings are in alignment with the view that there is no clear deterministic evidence of natural resource abundance as a curse or a blessing; therefore, the effect on a country depends on other determinants.”