The debate on the best way to achieve economic development for a country rich of natural resources has been a matter of discussion and disagreements. In this paper a possible solution has been provided. Through a case study an in-depth analysis on the Russian economy will prove that a unique reliance on a single sector - energy sector - is a twofold mistake. The Dutch Disease model developed by Corden and Neary as well as the Gabaix’s theory of Granular Origins of Aggregate Fluctuations will dig into the Russian economic structure in order to develop a complete and a complementary perspective. The main results of the paper state that the long-term consequences of this strategy outweigh the initial achieved economic improvements. The natural resource curse is a real economic problem and it is only a matter of time before the concealed symptoms display and spread throughout the whole industrial organization of the country damaging inexorably the manufacturing sector - the real source for a stable and sustainable economic development.

NATURAL RESOURCES: COULD EVER BE A BLESSING? THE RUSSIAN CASE

Covi, Giovanni
2015-01-01

Abstract

The debate on the best way to achieve economic development for a country rich of natural resources has been a matter of discussion and disagreements. In this paper a possible solution has been provided. Through a case study an in-depth analysis on the Russian economy will prove that a unique reliance on a single sector - energy sector - is a twofold mistake. The Dutch Disease model developed by Corden and Neary as well as the Gabaix’s theory of Granular Origins of Aggregate Fluctuations will dig into the Russian economic structure in order to develop a complete and a complementary perspective. The main results of the paper state that the long-term consequences of this strategy outweigh the initial achieved economic improvements. The natural resource curse is a real economic problem and it is only a matter of time before the concealed symptoms display and spread throughout the whole industrial organization of the country damaging inexorably the manufacturing sector - the real source for a stable and sustainable economic development.
2015
Economic Development - Natural Resource Curse - Dutch Disease Oil - Industrial Policy - Russian Economy - Dualistic Development
File in questo prodotto:
File Dimensione Formato  
NATURAL RESOURCES_COULD EVER BE A BLESSING_The Russian Case.pdf

solo utenti autorizzati

Tipologia: Altro materiale allegato
Licenza: Accesso ristretto
Dimensione 1.28 MB
Formato Adobe PDF
1.28 MB Adobe PDF   Visualizza/Apri   Richiedi una copia

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11562/935839
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus ND
  • ???jsp.display-item.citation.isi??? ND
social impact