Natural resources and global misallocation

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

    Research output: Contribution to journalArticleResearch

    4 Citations (Scopus)

    Abstract

    © 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
    Volume11
    DOIs
    Publication statusPublished - 1 Jan 2019

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    Monge-Naranjo, A., Sánchez, J. M., & Santaeulàlia-Llopis, R. (2019). Natural resources and global misallocation. American Economic Journal: Macroeconomics, 11, 79-126. https://doi.org/10.1257/MAC.20170381