Diagnosing Dutch Disease: Does Russia Have the Symptoms?

 
Author/Editor: Oomes, Nienke ; Kalcheva, Katerina
 
Publication Date: April 01, 2007
 
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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(s): Oil | Russian Federation | Exchange rates | Natural resources | Economic reforms

Author's Keyword(s): Dutch Disease | Russia | oil | real exchange rate | transition
 
English
Publication Date: April 01, 2007
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA2007102 Pages: 32
Price:
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