Natural Resources And Economic Growth In Russia’s Regions
AbstractWe examine the impact of natural resources on economic growth in Russia’s regions since the introduction of the mineral tax in 2002. Using novel measures of natural resource rents produced in, but not necessarily appropriated by the regions (mineral tax collections), we demonstrate that mineral wealth has not significantly affected regional economic growth since 2002, although mineral-rich regions are significantly richer than the other regions. These results are contrary to the “resource curse” hypothesis. The absence of growth benefits to resource-endowed regions, however, is also at odds with the clearly beneficial impact of natural resources on the economic growth of t the country as a whole. We conclude that the Russian central government was successful in taxing away incremental regional resource rents during 2002-2011, but the regions preserved their pre-2002 benefits derived from mineral wealth.
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Bibliographic InfoPaper provided by National Research University Higher School of Economics in its series HSE Working papers with number WP BRP 55/EC/2014.
Length: 30 pages
Date of creation: 2014
Date of revision:
Publication status: Published in WP BRP Series: Economics / EC, April 2014, pages 1-30
natural resources; regional growth; taxation of minerals;
Find related papers by JEL classification:
- P28 - Economic Systems - - Socialist Systems and Transition Economies - - - Natural Resources; Environment
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-04-18 (All new papers)
- NEP-CIS-2014-04-18 (Confederation of Independent States)
- NEP-FDG-2014-04-18 (Financial Development & Growth)
- NEP-RES-2014-04-18 (Resource Economics)
- NEP-TRA-2014-04-18 (Transition Economics)
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