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Resource Rents and their Impact on Institutional and Economic Development

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  • Keay, Ian

Abstract

Over the twentieth century Canada’s energy, forestry, and mining industries played a substantial and increasing role in the growth and development of the aggregate economy. Despite the improving fundamentals that were underlying their increased contributions to the size, capital intensity, and productivity of the aggregate economy, the relative profitability and equity market performance of the resource industries deteriorated over the twentieth century. Without having to invoke entrepreneurial failure among the resource industries or equity market inefficiency, I am able to illustrate that falling relative output prices played the key role in a reconciliation of what, at first glace, appears to be a surprising relationship between the resource industries’ fundamentals, resource rents, and equity market performance.

Suggested Citation

  • Keay, Ian, 2007. "Resource Rents and their Impact on Institutional and Economic Development," Queen's Economics Department Working Papers 273619, Queen's University - Department of Economics.
    • Handle: RePEc:ags:quedwp:273619
    DOI: 10.22004/ag.econ.273619
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    More about this item

    Keywords

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    JEL classification:

    • N22 - Economic History - - Financial Markets and Institutions - - - U.S.; Canada: 1913-
    • N52 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - U.S.; Canada: 1913-
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

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