Resource-Based Regions, the Dutch Disease and City Development

Abstract

This paper examines the relationship between resource development and industrialization. When transport costs are high, regions with more valuable natural resources offer higher welfare than other regions. However, when transport costs decrease, firms begin to move out of the region, resulting in the Dutch disease, initially in terms of industry shares, but eventually in terms of welfare too when transportation is sufficiently free. If resource goods are also used as manufacturing inputs as well as final goods, they can substitute for labor when wages rise, which tends to alleviate the Dutch disease by keeping production costs down. The model thus provides helpful insight for cities trying to develop efficiently their limited resources.

Assessing the Impact of the National Sustainable Development Planning of Resource-Based Cities Policy on Pollution Emission Intensity: Evidence from 270 Prefecture-Level Cities in China

“…Column (4) shows that the regression coefficient of digital transformation was significantly positive at the 1% level, implying that the SDPRP promotes digital transformation. The coefficient for digital transformation in column (5) was significantly negative at the 5% level, indicating that digital transformation was effective at reducing pollution emission intensity.…”

“…During the First Five-Year Plan period, 53 out of 156 national key construction projects were laid out in resource-based cities, and the amount of investment received by resource-based cities accounted for about 50% of the total investment, which made a substantial contribution toward building a complete industrial system and promoting economic development in China. However, the overexploitation and consumption of resources in resource-based cities caused a huge impact on the ecological environment and social development [4]. For example, the development model of resource-based cities still strongly relies on the development of traditional industries and the exploitation of natural resources, and its modern manufacturing and high-tech industries are still in the primary development stages [5].…”