Natural resources and global misallocation

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

Research output: Contribution to journalArticlepeer-review


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 (US)
Pages (from-to)79-126
Number of pages48
JournalAmerican Economic Journal: Macroeconomics
Issue number2
StatePublished - 2019

ASJC Scopus subject areas

  • General Economics, Econometrics and Finance


Dive into the research topics of 'Natural resources and global misallocation'. Together they form a unique fingerprint.

Cite this