The shifting natural wealth of nations: The role of market orientation

Rabah Arezki; Frederick van der Ploeg; Frederik Toscani

doi:10.1016/j.jdeveco.2018.12.002

The shifting natural wealth of nations: The role of market orientation

Rabah Arezki^*, Frederick van der Ploeg, Frederik Toscani

^*Corresponding author for this work

Research output: Contribution to Journal › Article › Academic › peer-review

Abstract

This paper explores the effect of market orientation on (known or available) natural resource wealth using a novel dataset of world-wide major hydrocarbon and mineral discoveries. Our empirical estimates based on a large panel of countries show that increased market orientation causes a significant increase in discoveries of natural resources. In a thought experiment where economies in Latin America and sub-Saharan Africa remain closed, they would have only achieved one quarter of the actual increase in discoveries they have experienced since the early 1990s. Our results call into question the commonly held view that known or available natural resource endowments are exogenous.

Original language	English
Pages (from-to)	228-245
Number of pages	18
Journal	Journal of Development Economics
Volume	138
DOIs	https://doi.org/10.1016/j.jdeveco.2018.12.002
Publication status	Published - 1 May 2019

Funding

The following countries are included in our sample: Afghanistan, Albania, Algeria, Angola, Argentina, Armenia, Australia, Austria, Azerbaijan, Bahrain, Bangladesh, Bolivia, Botswana, Brazil, Brunei Darussalam, Bulgaria, Burkina Faso, Burundi, Cyprus, Cambodia, Cameroon, Canada, Central African Republic, Chile, China, Colombia, Republic of Congo, Democratic Republic of the Congo, Costa Rica, Czech Republic, Denmark, Dominican Republic, Ecuador, Egypt, El Salvador, Equatorial Guinea, Eritrea, Ethiopia, Fiji, Finland, France, Gabon, Germany, Ghana, Greece, Guatemala, Guinea, Guyana, Honduras, Hungary, Israel, India, Indonesia, Iran, Iraq, Ireland, Italy, Côte d'Ivoire, Japan, Jordan, Kazakhstan, Korea (South), Kuwait, Kyrgyz Republic, Lao P.D.R., Lesotho, Liberia, Libya, FYR Macedonia, Madagascar, Malaysia, Mali, Mauritania, Mexico, Mongolia, Morocco, Mozambique, Myanmar, Namibia, Netherlands, New Zealand, Nicaragua, Niger, Nigeria, Norway, Oman, Pakistan, Panama, Papua New Guinea, Peru, Philippines, Poland, Portugal, Qatar, Romania, Russia, Saudi Arabia, Senegal, Serbia, Sierra Leone, Slovak Republic, Solomon Islands, South Africa, Spain, Sri Lanka, Sudan, Suriname, Sweden, Syria, Tajikistan, Tanzania, Thailand, Togo, Tonga, Trinidad and Tobago, Tunisia, Turkey, Turkmenistan, United Arab Emirates, Ukraine, United Kingdom, United States, Uruguay, Uzbekistan, Venezuela, Vietnam, Yemen, Zambia, Zimbabwe. A.6

Keywords

Discoveries
Endogenous reserves
Institutions
Liberalization
Market orientation
Natural resources

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10.1016/j.jdeveco.2018.12.002

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title = "The shifting natural wealth of nations: The role of market orientation",

abstract = "This paper explores the effect of market orientation on (known or available) natural resource wealth using a novel dataset of world-wide major hydrocarbon and mineral discoveries. Our empirical estimates based on a large panel of countries show that increased market orientation causes a significant increase in discoveries of natural resources. In a thought experiment where economies in Latin America and sub-Saharan Africa remain closed, they would have only achieved one quarter of the actual increase in discoveries they have experienced since the early 1990s. Our results call into question the commonly held view that known or available natural resource endowments are exogenous.",

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AB - This paper explores the effect of market orientation on (known or available) natural resource wealth using a novel dataset of world-wide major hydrocarbon and mineral discoveries. Our empirical estimates based on a large panel of countries show that increased market orientation causes a significant increase in discoveries of natural resources. In a thought experiment where economies in Latin America and sub-Saharan Africa remain closed, they would have only achieved one quarter of the actual increase in discoveries they have experienced since the early 1990s. Our results call into question the commonly held view that known or available natural resource endowments are exogenous.

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ER -

The shifting natural wealth of nations: The role of market orientation

Abstract

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Keywords

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