In the last two centuries, international trade and technical progress have been crucial drivers of economic development. However, the functioning of modern economies still hinges on the use of natural resources like fossil fuels and minerals. Since the supplies of these resources are very unevenly distributed among countries, resource trade has become an important part of globalization. In particular, many industrialized economies heavily depend on imports from resource-rich countries. The dominance of natural resource extraction in certain national economies creates specific risks and opportunities for development and competitiveness. Many resources are exhaustible, which is a reason why their prices are generally highly volatile and expected to further rise in the future. Price volatility and trends will have a major impact on the trade positions and the terms of trade of resource-exporting and -importing economies. Another aspect of natural resources is the pollution of the environment associated with their use. In principle, appropriate environmental policies can correct for the market failure of negative externalities. But in open economies, governments tend to choose sub-optimal policies because they fear a loss of competitiveness of domestic industries. The issue of natural resource scarcity in a globalized world raises several fundamental issues for economic research. It is important to know how resource dependence affects trade patterns and the relative economic performance of both resource-rich and resource-poor economies. Therefore, the analysis should not only cover long-run equilibria but also the adjustment processes, for example after new resource discoveries. Specifically, we should