Abstract
It is a controversy debate among economists that scarcity of resource might have a negative effect on economic growth. However, with available technology progress supported by innovation, especially by vertical innovation, its effect will be eliminated. In this paper, we use panel data to estimate the effect of resource on economic growth with vertical innovation. It shows that there are a few different results on the context of whether or not with innovation. When we run regression with innovation, the coefficients of resource reserves are mostly positive and significant, showing that innovation have conversed the negative effects which is seen in the regression without innovation into positive ones, that is to say, the scarcity of resources might not lead to the stagnated economic growth.
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Wang, S., Zhang, X. (2011). Non-renewable Resources, Vertical Innovation and Economic Growth. In: Zhou, Q. (eds) Advances in Applied Economics, Business and Development. ISAEBD 2011. Communications in Computer and Information Science, vol 209. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-23020-2_48
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DOI: https://doi.org/10.1007/978-3-642-23020-2_48
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-23019-6
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