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Depletion of Natural Resources and Long-term Perspectives of the Russian Economy

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  • Eismont Oleg
  • Kuralbaeva Karlygash

Abstract

A long-term analysis of the economic development of a resource-exporting country is presented. Two kinds of models have been used: single-sector and two-to-three sector models. Within the single-sector model, the effects of the uncertainty of world resource prices, of the constraints of natural resources on export capacities, and of the impact of foreign assets on the economy of a resource-exporting country have been analyzed. Two- and three-sector models were used to study the effects of the positive externality resulting from the accumulation of knowledge in the manufacturing sector, and of resource depletion. The main results obtained are as follows. An increasing world natural resource price leads, in the long-term perspective, to decreasing rates of economic growth of a resource-exporting country. The higher the share of a natural resource sectors the lower the equilibrium growth rate of GDP of a resource-rich country.

Suggested Citation

  • Eismont Oleg & Kuralbaeva Karlygash, 1999. "Depletion of Natural Resources and Long-term Perspectives of the Russian Economy," EERC Working Paper Series 99-07e, EERC Research Network, Russia and CIS.
    • Handle: RePEc:eer:wpalle:99-07e
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    References listed on IDEAS

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    Cited by:

    1. António Portugal Duarte, 2005. "Purchasing power parity: an empirical study of three EMU countries," International Finance 0505010, University Library of Munich, Germany.

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    More about this item

    Keywords

    Dutch disease; endogenous economic growth;

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)

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