The ‘Resource Curse’ is a stylized fact that has been observed consistently in a number of development studies: countries that are relatively well-endowed with natural resources tend to grow more slowly than resource-poor economies. This article documents evidence that the Resource Curse extends to the individual states of the US Using a variety of specifications, regression of state GSP growth on resource intensity consistently shows a negative and significant relationship. There is evidence that crowding out of the manufacturing sector may contribute to the slower growth of resource-based economies.
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Donald G. Freeman (2008) studied this question.
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