How rich would resource-abundant countries be if they had actually followed the Hartwick Rule (invest resource rents in other assets) over the past 30 years? The authors use time series data on investments and rents on exhaustible resource extraction for 70 countries to answer this question. The results are striking: Gabon, Trinidad and Tobago, and Venezuela would all be as wealthy as the Republic of Korea, while Nigeria would be five times as well off as it is currently. The authors also derive a more general rule for sustainability-maintain positive constant genuine investment-and use this to draw further empirical results.
Bibliographic Details
| Main Authors: |
Hamilton, Kirk,
Ruta, Giovanni,
Tajibaeva, Liaila |
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| Language: | English |
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| Published: |
World Bank, Washington, DC
2005-01
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| Subjects: | ASSETS,
BASE YEAR,
CAPITAL ACCUMULATION,
CAPITAL GAINS,
CAPITAL STOCK,
CAPITAL STOCKS,
COAL,
COMPETITIVENESS,
CONSTANT RETURNS TO SCALE,
CONSUMPTION INCREASES,
CONSUMPTION LEVELS,
COPPER,
DEBT,
DEVELOPING COUNTRIES,
DEVELOPMENT ECONOMICS,
DEVELOPMENT INDICATORS,
DEVELOPMENT POLICY,
DUTCH DISEASE,
ECONOMIC ANALYSIS,
ECONOMIC DEVELOPMENT,
ECONOMIC GROWTH,
ECONOMIC REFORMS,
ELASTICITY,
EMPIRICAL WORK,
ENVIRONMENTAL ECONOMICS,
EXCHANGE RATE,
EXCHANGE RATES,
EXTERNALITIES,
FINANCIAL CRISES,
GDP,
HISTORICAL DATA,
HOUSEHOLDS,
HUMAN CAPITAL,
INCOME COUNTRIES,
INTEREST RATE,
MACROECONOMIC MANAGEMENT,
METHODOLOGY,
NATURAL DISASTERS,
NATURAL RESOURCES,
NEGATIVE EFFECTS,
NICKEL,
NOMINAL EXCHANGE RATES,
OPEN ECONOMIES,
OUTPUT,
PER CAPITA INCOME,
PETROLEUM,
POLICY RESEARCH,
POLITICAL ECONOMY,
POPULATION GROWTH,
PRICE TAKERS,
PRODUCTION FUNCTION,
PUBLIC INVESTMENT,
SILVER,
SUSTAINABLE DEVELOPMENT, |
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| Online Access: | http://documents.worldbank.org/curated/en/2005/01/5595789/capital-accumulation-resources-depletion-hartwick-rule-counterfactual
https://hdl.handle.net/10986/8896
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