How would the lack of natural resources affect economic development?

Answer 1

Economic Growth and Developing Economics study why some countries grow and others not.

The lack of economic resources is not obstacle for development. Examples are Singapore and Hong-Kong. The world has several developed countries in which natural resources are scarce, such as Japan or Netherlands.

Important factors are the education of the population, capital availability and overall efficiency (total productivity factor). Innovation through research and development, and the right institutions are key. Geography is not a factor, since Domenican Republic and Haiti are in the same island and have quite different income per person. Culture is also an important factor that is being studied by researchers today.