The implications of heterogeneous resource intensities on technical change and growth

Karen Pittel and Lucas Bretschger

Canadian Journal of Economics, 2010, vol. 43, issue 4, 1173-1197

Abstract: We analyze the long-term dynamics of an economy in which sectors are heterogeneous with respect to the intensity of natural resource use. It is shown that heterogeneity induces technical change to be biased towards resource-intensive sectors. Along the balanced growth path, the sectoral structure of the economy is constant as the higher resource dependency in resource-intensive sectors is compensated by enhanced research activities. Resource taxes have no impact on dynamics except when the tax rate varies over time. Research subsidies and the sectoral provision of productivity-enhancing public goods raise growth and provide an effective tool for structural policy.

JEL-codes: O4 O41 Q01 Q3 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (31)

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Journal Article: The implications of heterogeneous resource intensities on technical change and growth (2010)
Working Paper: The Implications of Heterogeneous Resource Intesities on Technical Change and Growth (2010)
Working Paper: The Implications of Heterogeneous Resource Intensities on Technical Change and Growth (2009)
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