ROLE OF NATURAL RESOURCES IN ECONOMIC DEVELOPMENT

Abstract

This paper analyzes the relation between natural resources abundance and economic development during 1970 to 2003 in major nations.A series of variables such as investment ratio,scientific level and population growth imply a positive correlation between natural resources abundance and economic development in major nations,and proves that non-existence of "resources curse".The European coastal nations have an outstanding positive correlation between natural resources abundance and economic growth.For those gulf rich nations abundant in natural resources like Kuwait and Qatar have a positive correlation between GDP per capita and resources abundance,but a fast population growth,low investment ratio and poor scientific level will baffle a sustainable economic growth in these nations who largely rely on resources.