What impact do natural resources have on economic growth? Will it be possible for a country with few natural resources to grow rapidly? Why or why not?© BrainMass Inc. brainmass.com October 10, 2019, 5:28 am ad1c9bdddf
Believe it or not, empirical studies show that there is no correlation between natural resource and economic growth. Sachs and Warner (1997) noted that one of the surprising features of modern economic growth is that economies abundant in natural resources have tended to grow slower than economies without substantial natural resources.
Take for instance Japan. The country's lack of natural resources is not a hindrance to its rapid economic growth.
By comparison, one Asian country is endowed with more natural resources than Japan. Yet Japan leads ...
The solution shows the correlation between the presence of natural resources and economic growth.