Advanced Search
MyIDEAS: Login

Exploiting Energy and Mineral Resources in Central Asia, Azerbaijan and Mongolia

Contents:

Author Info

  • Richard Pomfret

    ()
    (School of Economics, University of Adelaide)

Abstract

Recent literature has focussed on institutional degradation and revenue volatility as major sources of a resource curse. Formerly centrally planned countries may be especially vulnerable due to their mutating institutions and macropolicy inexperience. This paper examines these issues through case studies of six former Soviet republics and Mongolia. The principal focus is on the methods of involving foreign partners in exploration and exploitation of natural resources and, to a lesser extent, on the use of revenues during resource booms. The consequences of alternative resource ownership patterns are difficult to model due to path dependency and the significance of the conjuncture of circumstances. Kazakhstan in the 1990s was a prime example of rent-seeking institutional degradation, but an exceptionally positive conjuncture in the 2000s (soaring oil prices, large oil and gas discoveries, and new pipelines) triggered institutional and policy evolution. Uzbekistan, by contrast, had less resource-rent-driven institutional degradation in the 1990s, but stagnated in the 2000s. Turkmenistan and Mongolia highlight the missed opportunities from not involving foreign partners, while Azerbaijan and the Kyrgyz Republic illustrate the less predictable outcomes following quick deals with foreign investors. Institutions matter, but the case studies suggest more complex relationships than revealed by simple correlations between indicators of institutional quality or of ownership patterns.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.economics.adelaide.edu.au/research/papers/doc/wp2010-16.pdf
Download Restriction: no

Bibliographic Info

Paper provided by University of Adelaide, School of Economics in its series School of Economics Working Papers with number 2010-16.

as in new window
Length: 30 pages
Date of creation: Jul 2010
Date of revision:
Handle: RePEc:adl:wpaper:2010-16

Contact details of provider:
Postal: Adelaide SA 5005
Phone: (618) 8303 5540
Web page: http://www.economics.adelaide.edu.au/
More information through EDIRC

Related research

Keywords: oil; gas; minerals; Central Asia; resource curse;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Halvor Mehlum & Karl Moene & Ragnar Torvik, 2004. "Institutions and the Resource Curse," DEGIT Conference Papers c009_012, DEGIT, Dynamics, Economic Growth, and International Trade.
  2. Bulte, Erwin H. & Damania, Richard & Deacon, Robert T., 2005. "Resource intensity, institutions, and development," World Development, Elsevier, vol. 33(7), pages 1029-1044, July.
  3. Asheim, G.B. & Buchholz, W. & Withagen, C.A.A.M., 2002. "The Hartwick Rule: Myths and Facts," Discussion Paper 2002-52, Tilburg University, Center for Economic Research.
  4. Richard Pomfret, 2009. "Using Energy Resources to Diversify the Economy: Agricultural Price Distortions in Kazakhstan," Comparative Economic Studies, Palgrave Macmillan, vol. 51(2), pages 181-212, June.
  5. Kalyuzhnova, Yelena & Nygaard, Christian, 2008. "State governance evolution in resource-rich transition economies: An application to Russia and Kazakhstan," Energy Policy, Elsevier, vol. 36(6), pages 1829-1842, June.
  6. Christa Brunnschweiler, 2009. "Oil and Growth in Transition Countries," OxCarre Working Papers 029, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
  7. Marc Gronwald & Johannes Mayr & Sultan Orazbayev, 2009. "Estimating the effects of oil price shockson the Kazakh economy," Ifo Working Paper Series Ifo Working Paper Nr. 81, Ifo Institute for Economic Research at the University of Munich.
  8. John Hartwick, 1976. "Intergenerational Equity and the Investing of Rents from Exhaustible Resources," Working Papers 220, Queen's University, Department of Economics.
  9. Pomfret, Richard, 2004. "Resource Abundance, Governance And Economic Performance In Turkmenistan And Uzbekistan," Discussion Papers 18735, University of Bonn, Center for Development Research (ZEF).
  10. Alexander Chubrik & Mateusz Walewski, 2010. "Oil Money vs. Economic Crisis: The Case of Azerbaijan," CASE Network E-briefs 06, CASE-Center for Social and Economic Research.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Arman Mazhikeyev & T.Huw Edwards & Marian Rizov, 2014. "Openness and Isolation: the comparative trade performance of the Former Soviet Central Asian countries," Discussion Paper Series 2014_02, Department of Economics, Loughborough University, revised Feb 2014.
  2. Annageldy Arazmuradov, 2012. "Foreign Aid, Foreign Direct Investment, and Domestic Investment Nexus in Landlocked Economies of Central Asia," Economic Research Guardian, Weissberg Publishing, vol. 2(1), pages 129-151, May.
  3. Richard Pomfret, 2011. "Resource Management and Transition in Central Asia, Azerbaijan, and Mongolia," Working Paper Series WP11-8, Peterson Institute for International Economics.
  4. Karen, Smith Stegen, 2011. "Deconstructing the "energy weapon": Russia's threat to Europe as case study," Energy Policy, Elsevier, vol. 39(10), pages 6505-6513, October.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:adl:wpaper:2010-16. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dmitriy Kvasov).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.