EMPIRICAL ANALYSIS ON RESOURCE CURSE COEFFICIENT OF CHINESE WESTERN AREAS

Wei Jieyu

ABSTRACT: The transmission channel of the resource curse has been studied by numerous Chinese and international scholars. The resource curse influences different areas at different degrees. This paper examines the seriousness of resource curse in different provinces on basis of the resource curse coefficient. The empirical outcome reveals Chinese western areas are major suffers of serious resource curse. Then, this paper studies relationships between resource curse coefficient and investment level, human capital, R&D investment, marketization level, as well as opening level. On the whole, Rapid development of western mining industries generates crowding-out effect on investment, human capital, R&D investment, marketization, and foreign trade. Investment growth and economic development of western areas can relieve resource curse to a large extent. However, economic growth on basis of infrastructure investment can’t sustained. In a long run, technical progress and human capital increase are key factors of sustainable development of western areas. This help us come up with theoretical guidance and suggestions for countering resource curse.

Keywords: Resource curse coefficient, investment level, human capital, R&D investment