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Growth in an oil abundant economy: The case of Venezuela


  • Betty Agnani
  • Amaia Iza


Venezuela growth experience in the last fifty years is characterized by a high economic growth rate during the period (1950-70), and a low economic growth rate in the last thirty years. In spite Venezuela is an oil abundant economy, this growth experience is mainly accounted by the evolution of the real GDP in the non-oil sector of the economy. Further- more, we make a growth accounting to quantify for how much the growth experience in the non-oil sector is due to physical capital accumulation and we find that most of its growth experience is accounted by the evolution of its TFP. On the other hand, the evolution of the oil rents have a high correlation with the TFP in the non-oil sector in the period (1950-80). During the high growth rate period, Venezuela experienced an impressive modernization. In consequence, the use of these oil rents, by the Government, may help to understand, at least partly, the growth experience of the non-oil sector of the venezuelan economy. We have constructed a model to check the importance of the venezuelan public policies.

Suggested Citation

  • Betty Agnani & Amaia Iza, 2005. "Growth in an oil abundant economy: The case of Venezuela," DEGIT Conference Papers c010_053, DEGIT, Dynamics, Economic Growth, and International Trade.
  • Handle: RePEc:deg:conpap:c010_053

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    Cited by:

    1. repec:lap:journl:601 is not listed on IDEAS
    2. Mohsen Mehrara, Mohsen & Alhosseini, Seyedmohammadsadegh & Bahramirad, Duman, 2008. "Resource curse and institutional quality in oil countries," MPRA Paper 16456, University Library of Munich, Germany, revised Mar 2009.
    3. Miguel Santos, 2016. "The Right Fit for the Wrong Reasons: Real Business Cycle in an Oil-dependent Economy," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 53(1), pages 61-94, December.
    4. Pedro Elosegui y Nicolás Grosman, 2016. "Structural Economic Model for Ecuador: a Dollar-ized and Oil-ized Economy," Económica, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 62, pages 23-53, January-D.
    5. Yuri Quixina & Álvaro Almeida, 2014. "Financial Development and Economic Growth in a Natural Resource Based Economy: Evidence from Angola," FEP Working Papers 542, Universidade do Porto, Faculdade de Economia do Porto.

    More about this item


    non-renewable resources; growt accounting; TFP; oil rents;

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

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