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Is Kazakhstan Vulnerable to Natural Resource Curse?

Author

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  • Karimov, Aziz
  • Oskenbayev, Yessengali

Abstract

This study utilizes panel data from 14 provinces of Kazakhstan and investigates the link between the point-source resources (oil and gas) and economic growth via institutional quality. Labour force migration from manufacturing to non-traded sector occurs as a result of wage increase in the manufacturing sector while its production price is determined and pinned down by the world market. On top of that, the manufacturing sector costs increase even more as a consequence of the price increase of non-traded goods used as inputs in the manufacturing sector. Although, the impact of interaction terms of diffuse resource (wheat) production and institutional quality is not observed, diffuse resources deteriorate the economic growth through wheat price volatility. The wheat price spikes lead to institutional inefficiencies. Moreover, rent-seeking activities of intermediaries in agricultural sector further undermine the economic growth.

Suggested Citation

  • Karimov, Aziz & Oskenbayev, Yessengali, 2013. "Is Kazakhstan Vulnerable to Natural Resource Curse?," WIDER Working Paper Series 130, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:wp2013-130
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    Cited by:

    1. Akhmetov, Almaz, 2017. "Testing the Presence of the Dutch Disease in Kazakhstan," MPRA Paper 77936, University Library of Munich, Germany.
    2. Dauvin, Magali & Guerreiro, David, 2017. "The Paradox of Plenty: A Meta-Analysis," World Development, Elsevier, vol. 94(C), pages 212-231.
    3. Bobojonov, Ihtiyor & Teuber, Ramona & Oshakbayev, Dauren & Glauben, Thomas, 2015. "Agrifood sector transformation and its implications on development of small farmers in Kazakhstan," 2015 Conference, August 9-14, 2015, Milan, Italy 211357, International Association of Agricultural Economists.

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