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A case study of an advanced Dutch disease: The Russian oil

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  • Covi, Giovanni

Abstract

The paper aims at investigating the dependency of the Russian economy on natural resources, underlining the causes and the possible consequences of this growth model. The analysis tries to evaluate if the Russian manufacturing has contracted the “Dutch Disease”, that is, if a boom in the oil and gas industry has led to a process of de-industrialization, directly through the resource movement effect and indirectly through the spending effect. In this investigation it will be emphasized the role played by the learning curves as a crucial factor in determining the comparative advantages of a country, and why an excessive reliance on exports of a single product may reduce the welfare of a nation in the long run.

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File URL: http://mpra.ub.uni-muenchen.de/46670/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 46670.

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Date of creation: 02 May 2013
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Handle: RePEc:pra:mprapa:46670

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Keywords: Economic development - Dutch disease - Natural Resource Curse – Oil dependence – Industrial policy – Russian economic growth;

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  1. Corden, W Max & Neary, J Peter, 1982. "Booming Sector and De-Industrialisation in a Small Open Economy," Economic Journal, Royal Economic Society, vol. 92(368), pages 825-48, December.
  2. Halvor Mehlum & Karl Moene & Ragnar Torvik, 2004. "Institutions and the Resource Curse," DEGIT Conference Papers c009_012, DEGIT, Dynamics, Economic Growth, and International Trade.
  3. Brunnschweiler, Christa N. & Bulte, Erwin H., 2008. "The resource curse revisited and revised: A tale of paradoxes and red herrings," Journal of Environmental Economics and Management, Elsevier, vol. 55(3), pages 248-264, May.
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