Harnessing hydrocarbon revenues: reflections on Russia

Authors

  • Frederick Van der Ploeg Oxford Centre for the Analysis of Resource Rich Economics, Department of Economics, University of Oxford, Manor Road Building, Manor Road, Oxford OX1 3 UQ, United Kingdom; Laboratory for Economic Performance and the Environment, St. Petersburg State University, 7–9, Universitetskaya nab., St. Petersburg, 199034, Russian Federation https://orcid.org/0000-0003-2340-4633
  • Aleksandra Malova St. Petersburg State University, 7–9, Universitetskaya nab., St. Petersburg, 199034, Russian Federation
  • Andrey Saltan St. Petersburg State University, 7–9, Universitetskaya nab., St. Petersburg, 199034, Russian Federation

DOI:

https://doi.org/10.21638/11701/spbu05.2017.301

Abstract

Economies, like Russia, blessed with resource abundance, do not usually perform well during the period of commodity price boom. The optimal policy of managing resource revenues prescribes to commit the permanent income rule to smooth the resource dividend in efficiency units and to smooth the real exchange rate. During the commodity price boom, Russia followed partially this prescribed policy, but the situation changed after the crash of oil and gas prices in 2014. Possible ways to overcome the consequences of low oil and gas prices are discussed, paying particular attention to the lack of economic complexity and the need for diversifi cation and capabilities for growth and development of the Russian economy. Refs 29. Figs 3.

Keywords:

natural resource curse, managing resource revenues, permanent income rule, real exchange rate, coping with low commodity prices, diversification, economic complexity

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Published

2017-09-29

How to Cite

Van der Ploeg, F., Malova, A., & Saltan, A. (2017). Harnessing hydrocarbon revenues: reflections on Russia. St Petersburg University Journal of Economic Studies, 33(3), 348–363. https://doi.org/10.21638/11701/spbu05.2017.301

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Section

Macroeconomic research