Yes, because the appreciation of the currency due to resource exports makes other industries less competitive in worlds markets.
Yes, because natural resource prices are very volatile.
Yes, because resouce abundance discourages people from learning.
Yes, because resource abundance encourages maladministration and corruption.
Yes, because resource abundance encourages conflict and war.
No. Empirical evidence based on export-shares is flawed, as it measures comparative advantage, not absolute advantage.
No. The correlation may be spurious because the selection of resource-rich countries is not random.
Total votes: 4
Learning objectives:
Understanding the concept of the Dutch Disease.
Understanding the concept of price volatility.
Understanding the concept of rent seeking.
Understanding the concepts of absolute and comparative advantage.
Understanding the difference between correlation and causation.
Understanding the importance of random selection in experiment design.
Presentation videos: