Presence of natural resouraces nations economy?

Question

how can the presence or absence of natural resources and arable land affect a nation's economy, regardless of the type of economic system?

Answer 1

That's like asking how can the presence of lungs and other vital organs affect life if their was no air being breathed by a human. The organs, like resources, are nice, but do nothing without air or an economic system to power them.

Natural Resources are neither sufficient or necessary for economic development in any one particular country. Economic systems explain why resource rich Nigeria is dirt poor, while resource scarce nations like Japan are filthy rich.

However, if all nations had the same economic system, then the nation with natural resources would of course be richer in real terms.

The textbook explanation is that resource presence increase a nation's Long Run Supply, or Production Possibilities. However, there is no guarantee that the nation will actually put these resources to use, and fulfill their potential economic development.