Free Markets Make Resource Development Worthwhile, Economist Says
In order to benefit from their natural resources, states need fewer regulations, lower taxes, and stronger private property rights, according to a new study by a Florida State University economist. The study offers an empirical analysis weighing the economic growth rates of resource-dependent states against the Economic Freedom of North America index (which operates on a scale of 1-10, with 10 being the freest) to determine the level of economic freedom required for states to benefit from natural resource development. Research suggests that in regions lacking policies consistent with free markets, private-property rights and a stable and fair legal system, natural resource dependence can weaken economic growth — a phenomenon known as the "resource curse." read more