American Economic Journal:
Macroeconomics
ISSN 1945-7707 (Print) | ISSN 1945-7715 (Online)
Natural Resources and Global Misallocation
American Economic Journal: Macroeconomics
vol. 11,
no. 2, April 2019
(pp. 79–126)
Abstract
Are production factors allocated efficiently across countries? To differentiate misallocation from factor intensity differences, we provide a new methodology to estimate output shares of natural resources based solely on current rent flows data. With this methodology, we construct a new dataset of estimates for the output shares of natural resources for a large panel of countries. In sharp contrast with Caselli and Feyrer (2007), we find a significant and persistent degree of misallocation of physical capital. We also find a remarkable movement toward efficiency during the last 35 years, associated with the elimination of interventionist policies and driven by domestic accumulation.Citation
Monge-Naranjo, Alexander, Juan M. Sánchez, and Raül Santaeulàlia-Llopis. 2019. "Natural Resources and Global Misallocation." American Economic Journal: Macroeconomics 11 (2): 79–126. DOI: 10.1257/mac.20170381Additional Materials
JEL Classification
- E22 Investment; Capital; Intangible Capital; Capacity
- E23 Macroeconomics: Production
- O13 Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
- Q21 Renewable Resources and Conservation: Demand and Supply; Prices
- Q31 Nonrenewable Resources and Conservation: Demand and Supply; Prices
- Q32 Exhaustible Resources and Economic Development