The implications of natural resource exports for non-resource trade

Anthony Venables and Torfinn Harding

No 9318, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Foreign exchange windfalls such as those from natural resource revenues change non-resource exports, imports, and the capital account. We study the balance between these responses and, using data on 41 resource exporters for 1970-2006, show that the response to a dollar of resource revenue is, approximately, to decrease non-resource exports by 75 cents and increase imports by 25 cents, implying a negligible effect on foreign saving. The negative per dollar impact on exports is larger for countries which have good institutions and higher income levels. These countries have a higher share of manufacturing in their non-resource exports, and we show that manufactures are more susceptible than other products to being crowded out by resource exports.

Keywords: Dutch disease; Exports; Imports; Natural resources; Resource curse; Trade (search for similar items in EconPapers)
JEL-codes: E21 E62 F43 H63 O11 Q33 (search for similar items in EconPapers)
Date: 2013-01
New Economics Papers: this item is included in nep-env, nep-int, nep-mac and nep-res
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
https://cepr.org/publications/DP9318 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: The Implications of Natural Resource Exports for Nonresource Trade (2016)
Working Paper: The Implications of Natural Resource Exports for Non-Resource Trade (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:9318

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP9318
orders@cepr.org

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by (repec@cepr.org).