Dutch Disease or Agglomeration? The Local Economic Effects of Natural Resource Booms in Modern America / Hunt Allcott, Daniel Keniston.

Format:

Book

Author/Creator:

Allcott, Hunt.

Contributor:

National Bureau of Economic Research.

Keniston, Daniel.

Series:

Working Paper Series (National Bureau of Economic Research) no. w20508.

NBER working paper series no. w20508

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2014.

Summary:

Do natural resources benefit producer economies, or is there a "Natural Resource Curse,"0 perhaps as the crowd-out of manufacturing productivity spillovers reduces long-term growth? We combine new data on oil and gas endowments with Census of Manufactures microdata to estimate how oil and gas booms affect local economies in the United States. Local wages rise during oil and gas booms, but manufacturing is not crowded out--in fact, the sector grows overall, driven by upstream and locally-traded subsectors. Tradable manufacturing subsectors do contract during resource booms, but their productivity is unaffected, so there is no evidence of foregone local learning-by-doing effects. Over the full 1969-2014 sample, a county with one standard deviation additional oil and gas endowment averaged about one percent higher real wages. Overall, the results provide evidence against a Natural Resource Curse within the United States.

Notes:

Print version record

September 2014.