Diagnosing Dutch Disease: Does Russia Have the Symptoms?

April 1, 2007

Preview Citation

Format: Chicago

Katerina Kalcheva, and Nienke Oomes. Diagnosing Dutch Disease: Does Russia Have the Symptoms?, (USA: International Monetary Fund, 2007) accessed September 19, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

In this paper, we assess whether recent economic developments in Russia are symptomatic of Dutch Disease. We first provide a brief review of the literature on Dutch Disease and the natural resource curse. We then discuss the symptoms of Dutch Disease, which include (1) real exchange rate appreciation; (2) slower manufacturing growth; (3) faster service sector growth; and (4) higher overall wages. We test these predictions for Russia while carefully controlling for other factors that could have led to similar symptoms. We conclude that, while Russia has all of the symptoms, the diagnosis of Dutch Disease remains to be confirmed.

Subject: Dutch disease, Manufacturing, Oil prices, Real exchange rates, Services sector

Keywords: Appreciation, Movement effect, Price, Russia, Service sector, WP

Publication Details

Pages:

32
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2007/102
Stock No:

WPIEA2007102
ISBN:

9781451866667
ISSN:

1018-5941

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