The Role of Natural Resources and Geography for Productivity in Developed Countries

Working Papers 320 Sakari Lähdemäki, Eero Lehto, Eero Mäkynen

This paper considers how natural resources and geography impact labour productivity either directly or through R&D-intensity, education level and product structure. The country set considered includes 42 developed and developing countries. By geography, we mean population size, internal density and geographical centrality with respect to activity outside a country’s borders. According to our results, of natural resources forest area and gas and oil reserves have mostly a negative total effect on labour productivity. Agricultural area and minerals, instead, support productivity. Of geographical variables internal density raises R&D-intensity and via it productivity. Geographical centrality and population size, instead, negatively impacts productivity.

Keywords: productivity, natural resources, geography, R&D-intensity, education, consumer goods share of manufacturing

Julkaistu: 18.4.2018
ISBN: 978-952-209-172-7 (pdf)
ISSN: 1795-1801 (pdf)
JEL: O13, O40, O47, O57, Q00, R120