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The Shifting Natural Wealth of Nations : The Role of Market Orientation / Arezki, Rabah.

World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online

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Format:
Book
Government document
Author/Creator:
Arezki, Rabah.
Contributor:
Arezki, Rabah.
Toscani, Frederik.
Ploeg, Frederick van der, 1956-
Series:
Policy research working papers.
World Bank e-Library.
Language:
English
Subjects (All):
Coastal and Marine Resources.
Endogenous Reserves.
Energy.
Energy and Natural Resources.
Industry.
Institutions.
International Economics and Trade.
International Trade and Trade Rules.
Liberalization.
Market Orientation.
Mining and Extractive Industry(Non-Energy).
Natural Resources.
Water Resources.
Local Subjects:
Coastal and Marine Resources.
Endogenous Reserves.
Energy.
Energy and Natural Resources.
Industry.
Institutions.
International Economics and Trade.
International Trade and Trade Rules.
Liberalization.
Market Orientation.
Mining and Extractive Industry(Non-Energy).
Natural Resources.
Water Resources.
Physical Description:
1 online resource (49 pages)
Other Title:
Shifting Natural Wealth of Nations
Place of Publication:
Washington, D.C. : The World Bank, 2018.
System Details:
data file
Summary:
This paper explores the effect of market orientation on (known) natural resource wealth using a novel dataset of world-wide major hydrocarbon and mineral discoveries. Consistent with the predictions of a two-region model, the 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 whereby economies in Latin America and sub-Saharan Africa remained closed, they would have only achieved one quarter of the actual increase in discoveries they have experienced since the early 1990s. The results call into question the commonly held view that natural resource endowments are exogenous.

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