With Eviews8, using the OLS model, individual fixed effect model, time fixed effect model and individual-time fixed effect model, “resource curse” effect and transmission mechanism are analyzed in 36 resource-based cities in central China. The results show that individual-time fixed effect model is the best. In the individual-time fixed effect model, the regression coefficient of resource dependence is negative and it’s significant at 5% level, which proves that “resource curse” effect really exists. Resource dependence has a negative impact on manufacturing investment at 1% significant level. Manufacturing investment has a positive effect on the actual GDP per capita at 5% significant level. In conclusion, the main transmission mechanism of “resource curse” effect is crowding out effect of manufacturing industry. In the transformation and development of resource-based cities, more attention should be paid to attract manufacturing investment, reduce the government's intervention in the microeconomic field, and build a diversified industrial system to realize the sustainable development of economic society.