Economist Dr. Khan claims that a country's long-term growth is shaped less by natural resource endowments than by the quality of its institutions — courts, property rights, and public services. Critics counter that resource-rich countries grow faster on average.
Which finding, if true, would most strongly support Dr. Khan's claim against the critics?
- A
Institutions are difficult to measure precisely.
- B
Some resource-rich countries have experienced rapid growth in recent decades.
- Ccheck_circle
Among resource-rich countries, those with stronger institutions grew several times faster over the past 50 years than those with weaker institutions, while resource-poor countries with strong institutions grew faster than resource-rich countries with weak institutions.
- D
Most countries have at least some natural resources.
Explanation
A holds resource endowment constant and varies institutions, showing institutions outweigh resources, directly supporting Khan's claim. B is consistent with the critics; C and D are tangential.