A Cross-Examination of the Perspectives on Why Natural Resource Abundant Economies Tend to Grow Slowly

Abstract

It does appear to be a straightforward thinking that economies with abundant natural resources stand a better chance of growing faster than those with relatively little or no natural resources. In fact, this perception is strongly upheld by theories such as the factor proportions theory which tend to stress that if an economy has abundant resources; then it is better positioned to produce and export in large quantities those produces that use the available relatively abundant resources. However, over the years, researchers and scholars have revealed through their research and scholarly works that it is possible for an economy to have abundant resources and yet grow very slowly. On account of such preposition, a number of perspectives have been put forward attempting to explain why natural resource abundant economies tend to grow slowly. Considering that there are a number of several competing perspectives to explain the existence of this phenomenon, it is very difficult to put a finger on a single perspective as the perfect explanation for the existence of the phenomenon. In light of this situation, this paper attempts to cross-examine the various prevailing perspectives and draw conclusions on what possibly could stand out from each perspective as credible explanation for the slow growth of natural resource abundant economies.

Keywords: Economies, Natural Resources, Abundant Resources, Growth, Development

DOI: 10.7176/JESD/10-14-13

Publication date:July 31^st 2020