Growth in an oil abundant economy: The case of Venezuela

Betty Agnani () and Amaia Iza ()
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Amaia Iza: DFAEII - The University of the Basque Country

No 08/18, ThE Papers from Department of Economic Theory and Economic History of the University of Granada.

Abstract: Venezuela´s growth experience over the past fifty years is characterised by a high economic growth rate from 1950 to 1977 and a low economic growth rate over the 1977-2003 period. In particular, we show that the country has been in a ‘great depression’ since the late seventies. We also show that although Venezuela has an oil abundant economy, this growth experience is largely due to the evolution of its real non-oil GDP. We perform a growth accounting exercise to quantify the extent to which the growth experience in the non-oil sector is a result of physical capital accumulation, finding that non-oil sector behavior can largely be explained by the evolution of TFP. Finally, we also make some correlations to determine whether the oil sector has affected the non-oil sector, either through its capital accumulation or through its TFP. We find that the correlation between oil revenues and capital per worker or non-oil TFP is always negative.

Keywords: non-renewable resources; growth accounting; TFP; oil rents. (search for similar items in EconPapers)
JEL-codes: O47 Q32 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ene and nep-fdg
Date: 2008-12-31
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http://www.ugr.es/~teoriahe/RePEc/gra/wpaper/thepapers08_18.pdf (application/pdf)

Related works:
Working Paper: Growth in an oil abundant economy: The case of Venezuela (2005)
Working Paper: Growth in an oil abundant economy: The case of Venezuela (2005)
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Persistent link: http://EconPapers.repec.org/RePEc:gra:wpaper:08/18

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