The Implications of Natural Resource Exports for Non-Resource Trade
Anthony Venables and
Torfinn Harding
No 103, OxCarre Working Papers from Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford
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 show that the response to $1 of resource revenue is, for our preferred estimates, to decrease non-resource exports by 74 cents and increase imports by 23 cents, implying a negligible effect on foreign saving. The negative per $1 impact on exports is larger for manufactures than for other sectors, and particularly large for internationally mobile manufacturing sectors. While standard Dutch disease analysis points to contraction of the tradable sector as a whole, division into non-resource exports and imports is important if, as suggested by much development literature, a higher share of exports to GDP is associated with faster growth. The large negative impact of resources on these exports points to the difficulty resource rich economies face in diversifying their exports.
Keywords: natural resources; Dutch disease; resource curse; trade; exports; imports (search for similar items in EconPapers)
JEL-codes: E21 E62 F43 H63 O11 Q33 (search for similar items in EconPapers)
Date: 2013-01-15
New Economics Papers: this item is included in nep-ene, nep-env, nep-int, nep-mac and nep-res
References: Add references at CitEc
Citations: View citations in EconPapers (21)
Downloads: (external link)
https://ora.ox.ac.uk/objects/uuid:68609894-f9b9-44ac-af84-c3c851736b1c (text/html)
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:oxf:oxcrwp:103
Access Statistics for this paper
More papers in OxCarre Working Papers from Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford Contact information at EDIRC.
Bibliographic data for series maintained by Melis Boya (melis.boya@economics.ox.ac.uk this e-mail address is bad, please contact repec@repec.org).