Thorvaldur Gylfason

Thorvaldur Gylfason is Research Professor of Economics at the University of Iceland and Research Fellow at the CEPR in London, SNS in Stockholm, CESifo in Munich, and the US-Japan Center at New York University. His most recent book in English is Principles of Economic Growth (Oxford University Press, 1999).

Papers Published in World Economics:

Mother Earth: Ally or Adversary?

Economic growth requires capital. This article reviews the relationship between economic growth around the world and six different kinds of capital: real capital; human capital; financial capital; foreign capital; social capital; and natural capital. Economic theory and empirical evidence suggest that domestic and foreign investment, education, financial maturity, and reasonable equality in the distribution of income are all good for growth. However, recent theory and evidence also seem to suggest that natural capital—i.e., abundant natural resources—may crowd out or impair other types of capital and thus impede economic growth over long periods.

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