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Diagnosing Dutch disease: Does Russia have the symptoms?

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Author Info
Oomes , Nienke () (BOFIT)
Kalcheva, Katerina (BOFIT)

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Abstract

In this paper, we assess whether recent economic developments in Russia are symptomatic of Dutch Disease. We first provide a brief review of the literature on Dutch Disease and the natural resource curse. We then discuss the symptoms of Dutch Disease, which include (1) real exchange rate appreciation; (2) slower manufacturing growth; (3) faster service sector growth; and (4) higher overall wages. We test these predictions for Russia while carefully controlling for other factors that could have led to similar symptoms. We con-clude that, while Russia has all of the symptoms, the diagnosis of Dutch Disease remains to be confirmed.

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Publisher Info
Paper provided by Bank of Finland, Institute for Economies in Transition in its series BOFIT Discussion Papers with number 7/2007.

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Length: 43 pages
Date of creation: 20 Apr 2007
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Handle: RePEc:hhs:bofitp:2007_007

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Related research
Keywords: Dutch disease real exchange rate resource curse Russia oil transition

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Find related papers by JEL classification:
F30 - International Economics - - International Finance - - - General
P28 - Economic Systems - - Socialist Systems and Transition Economies - - - Natural Resources; Environment
Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General

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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.:
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    Other versions:
  7. Christopher Adam & David Bevan, 2004. "Aid, Public Expenditure and Dutch Disease," Development and Comp Systems 0409027, EconWPA. [Downloadable!]
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Full references

Cited by:
(explanations, 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.)

  1. Balázs Égert & Carol S. Leonard, 2007. "Dutch Disease Scare in Kazakhstan: Is It Real?," William Davidson Institute Working Papers Series wp866, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
    Other versions:
  2. Garbis Iradian, 2007. "Rapid Growth in Transition Economies: Panel Regression Approach," IMF Working Papers 07/170, International Monetary Fund. [Downloadable!]
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