Oil and Growth in Transition Countries

Brunnschweiler, Christa N.

doi:10.2139/ssrn.1403313

Cited by 17 publications

(9 citation statements)

References 4 publications

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“…Arezki and van der Ploeg (2007) provide some support for these results as doesBrunnschweiler (2009). 3 This is also consistent with the empirical evidence provided byKlenow and Rodriguez-Clare (1997).…”

supporting

confidence: 71%

Growth, development and natural resources: New evidence using a heterogeneous panel analysis

Cavalcanti

Mohaddes

Raissi

2011

The Quarterly Review of Economics and Finance

200

106

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This paper explores whether natural resource abundance is a curse or a blessing. In order to do so, we …rstly develop a theory consistent econometric model, in which we show that there is a long run relationship between real income, the investment rate, and the real value of oil production. Secondly, we investigate the long-run (level) e¤ects of natural resource abundance on domestic output as well as the short-run (growth) e¤ects. Thirdly, we make use of a non-stationary panel approach which explicitly estimates the long-run relationships from annual data as opposed to the dynamic and static panel approaches which might in fact estimate the high-frequency relationships. Fourthly, we account for cross-country dependencies that arise potentially from oil price shocks and other unobserved common factors, and allow countries to respond di¤erently to these shocks. Finally, we explicitly recognize that there is a substantial heterogeneity in our sample, consisting of 53 oil exporting and importing countries with annual data between 1980-2006, and adopt the methodology developed by Pesaran (2006) for estimation. This approach considers di¤erent dynamics for each country and is consistent under both cross-sectional dependence and cross-country heterogeneity. We also check the robustness of these results by using the fully modi…ed OLS method of Pedroni (2000). Our non-stationary approach also allows for country-speci…c unobserved factors, such as social and human capital, to be captured in the …xed e¤ects and the heterogeneous trends together with any omitted factors. Our estimation results, using the real value of oil production, rent or reserves as a proxy for resource endowment, indicate that oil abundance is in fact a blessing and not a curse, exhibited through both the long-run and the short-run e¤ects.JEL Classi…cations: C23, O13, O40, Q32.

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supporting

confidence: 71%

Growth, development and natural resources: New evidence using a heterogeneous panel analysis

Cavalcanti

Mohaddes

Raissi

2011

The Quarterly Review of Economics and Finance

200

106

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“…This result is in obvious contrast with the effect of hydrocarbon and mineral rents on the economic growth of the entire country. It is also in contrast with the recent results by Alexeev and Conrad (2009;2011), Brunnschweiler (2009) and Brückner et al (2012) who find significant positive effects of natural resources on economic growth based on country-level data. We attribute this difference in results to the ability of Russia's central government to tax away regional resource rents during the 2000's.…”

Section: Introductioncontrasting

confidence: 99%

“…present a dissenting view arguing that oil and mineral resources do not impede long-term economic growth and do not worsen institutional quality. Frankel (2010) presents a recent survey of this literature.5 Although seePapyrakis and Raveh (2013) on the empirical analysis of a regional Dutch Disease.6 In addition to already mentionedAlexeev and Conrad (2009a), seeBruckner et al (2012),Brunnschweiler (2009), andAlexeev and Conrad (2011). All these papers show that natural resources, particularly "point-source" ones, actually promote long-term economic growth and the latter two paper demonstrate this result for the economies in transition in particular.…”

mentioning

confidence: 99%

Natural Resources and Economic Growth in Russia's Regions

Alexeev

Chernyavskiy

2014

SSRN Journal

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We examine the impact of natural resources on economic growth in Russia's regions since the introduction of the mineral tax in 2002. Using novel measures of natural resource rents produced in, but not necessarily appropriated by the regions (mineral tax collections), we demonstrate that mineral wealth has not significantly affected regional economic growth since 2002, although mineral-rich regions are significantly richer than the other regions. These results are contrary to the "resource curse" hypothesis. The absence of growth benefits to resource-endowed regions, however, is also at odds with the clearly beneficial impact of natural resources on the economic growth of t the country as a whole. We conclude that the Russian central government was successful in taxing away incremental regional resource rents during 2002-2011, but the regions preserved their pre-2002 benefits derived from mineral wealth.

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“…We see a similar pattern in the electricity industry: the evolution of the electricity mix frequently depends on the energy resource endowment [6,7]. If these countries present a high potential for hydroelectric power or have important reserves of oil and coal, usually there are no investments in developing other electricity sources.…”

Section: Introductionmentioning

confidence: 85%