The Validation And Countermeasures Study Of "Resource Curse" Hypothesis

We examine empirically the resource curse hypothesis and its transmissionchannels use26coal-rich cities and13oil-rich cities’ panel data which from1997to2009, then put the cities together as a classical representation of resource-rich cities inour country. We learned that the resource curse hypothesis is obvious existed, but theinfluence degree is different when study different objects. The natural wealth reduceeconomic growth, not only because it have a negative impact on growth, but alsothrough crowding out growth-promoting activities, such as the manufacturing industry,FDI, schooling and RD, well it has a positive impact on investment. Now we knowthat the resource curse have4transmission channels, the biggest is manufacturingindustry, then FDI, then RD and schooling.The resource-rich areas are impacted deeply by political, for which the price ofresource is much lower then its real level, can’t reflect the resources’ demand andsupply. So we put the international annual price divided by dominant annual price ofcoal as a variable into equation to examine political effect. The result is the variable isnegative to economic growth obvious at the level of5%. We also put the periodvariable into equation to examine the change of political between periods, and find ithas a positive impact on growth.Except those factors we have said in this paper, some other factors are also havea negative impact on growth, such as the environment pollution, not fit property, biggap between rich and poor and so on. There are so many factors impact the economicgrowth, its very complicated and need us analysis it in all aspects.