Natural resources and global misallocation

Alexander Monge-Naranjo, Juan M. Sánchez, Raül Santaeulàlia-Llopis

    Research output: Contribution to journalArticleResearch

    7 Citations (Scopus)


    © American Economic Journal: Applied Economics 2019. 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 last 35 years, associated with the elimination of interventionist policies and driven by domestic accumulation.
    Original languageEnglish
    Pages (from-to)79-126
    JournalAmerican Economic Journal: Macroeconomics
    Publication statusPublished - 1 Jan 2019


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