Diagnosing Dutch Disease : Does Russia Have the Symptoms?

Author/Editor:

Katerina Kalcheva ; Nienke Oomes

Publication Date:

April 1, 2007

Electronic Access:

Free Full text (PDF file size is 424 KB).Use the free Adobe Acrobat Reader to view this PDF file

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.

Series:

Working Paper No. 07/102

Subject:

English

Publication Date:

April 1, 2007

ISBN/ISSN:

9781451866667/1018-5941

Stock No:

WPIEA2007102

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

32

Please address any questions about this title to publications@imf.org