β Scribed by Patrick K. Asea; Amartya Lahiri
No coin nor oath required. For personal study only.
Are natural resources harmful to growth? We address this question using a two-sector, endogenous growth model in which human capital is the engine of growth. By increasing the rewards to unskilled labor, natural resources make schooling more expensive. As long as the intertemporal elasticity of consumption substitution is not too high, this slows down human capital accumulation and growth. The presence of production spillovers from human capital, however, implies that a planner could react to a resource boom by increasing human capital accumulation even though the decentralized solution yields the exact opposite. The paper also shows that as the production complementarity between natural resources and unskilled labor declines, the growth effects of natural resources become increasingly sensitive to whether or not there is free trade in goods. The empirical evidence lends support to the main channelnatural resources to human capital to growththat is suggested in the paper.
π SIMILAR VOLUMES
Laywren must make a choice and her world's survival depends on her making the right one--DreΓdreng to the goddess or Modor to the unnaturals? Blessed by the goddess and raised to be a warrior, mixed-breed Laywren is brutal but fair. She lives by the sword, dagger and arrow, and she survives in a dy