Study On The Relationship Between Resource Endowment And The Economic Growth Of Oil-resource-based Cities In China

Since the onset of ‘Dutch Disease’ in 1980 s, the study on the relationship between resource endowment and regional economic growth had been gradually involved into the normative economic category, which became a hot topic in economic study. Petroleum, as an important natural resource, has played an important role in driving the development of 15 oil-resource-based cities in China. However, in the meantime, it brought a series of problems to those cities, including over-dependence on a certain industry, deterioration of ecological environment, poor urban competitiveness, etc. While the petroleum resources bring positive effect on urban economic growth, it brought negative impact as well. In order to avoid it’s negative impact on the cities and transform the resource advantages into economic advantages, it is necessary to carry out a study on the relation between petroleum resources and urban economic growth, as well as on the mechanism of action involved, so as to promote the rapid and health development of those oil-resource-based cities, hence to prevent them from falling into the trap of resource advantage.Being guided by the basic theories of macroeconomics, development economics and resource economics, this paper adopted a research method that included the combination of normative analysis, empirical analysis, the integration of quantitative analysis and qualitative analysis. On the basis of going through endogenous growth theory, resource curse theory and analyzing the resource endowment and economic development of those oil oriented cities, this paper conducted an empirical analysis on the relation between resource endowment and urban economic growth, as well as on the mechanism of action involved by using panel data model. Then, this paper found the transmission mechanism, through which the petroleum resources have brought positive and negative effects on the cities. Finally, based on the result of empirical analysis, this paper provided suggestions for sustainable development of oil-resource-based cities.Through researching, this paper achieved following results and innovations: Firstly, clarifying the relationship between petroleum resource endowment and urban economic growth. On the basis of distinguishing the two basic concepts, petroleum resource abundance and petroleum resource dependence, this paper empirically analyzed their relations with urban economic growth separately, and found the inverse U shape between petroleum resource abundance and urban economic growth, which indicated that the higher the resource abundance, the more evident driving effect it has on economic growth of oil-resource-based cities after which exceeded certain threshold value. However, an over-dependence on petroleum resources may generate the trap of resources advantage. Secondly, it has confirmed the mechanism of action for resource dependence to have negative impact on economic growth of oil-resource-based cities. By conducting empirical analysis, it has found that due to over-dependence on petroleum resource, it has squeezed the manufacturing industry, hence it has lowered down the level of development of the city’s manufacturing industry; moreover, it has crushed out the input in scientific and technical innovation, hence it has reduced the city’s ability in making scientific and technical innovations; the economic activity of the cities are reduced due to the institutional factor. Through such three channels, the petroleum resources may have hindering effect on the economic growth of the cities. Finally, based on the above results, it has proposed the countermeasures for the sustainable development of oil oriented cities. Furthermore, based on the empirical result, it has classified those oil-resource-based cities based on their actual conditions, thereby, it put forward the strategy of classified development for oil-resource-based cities. In addition, in order to realize the sustainable development, oil-resource-based cities have to increase its effort in adjusting industrial structure, improving its industrial competitiveness, increasing its ability in making scientific and technical innovations and increasing its human capital stock in an all-round way and speeding up the construction of its financial system.