Natural Resources, Institutional, And Economic Growth

The empirical observation of development economists firstly found that since World Warâ…¡, the economic performances of resources abundant countries were often even worse than those resource scarce ones. In the traditional sense, abundant natural resource is a "natural gift" or a large amount of valuable assets from god that entitle them to better growth performance.However, various evidences turn god down. This illogical phenomenon named as'resource curse'attracts a large number of economists' attention.This paper well organizes results of previous researches and tries to illustrate, in theory, the causes and transmission mechanisms of'resource curse' through the establishment of an across-time economic growth model.