Resource rents, savings behavior, and scenarios of economic development

Simple item page
dc.contributor.authorSadik-Zada, Elkhan Richard
dc.date.accessioned2023-04-14T11:30:21Z
dc.date.available2023-04-14T11:30:21Z
dc.date.issued2023
dc.description.abstractThe paper revisits the nexus between natural resources and economic growth from the lens of development economics. It augments the traditional dual-sector economy model by the assumption that in addition to capitalists, also workers contribute to the capital accumulation through private savings out of their wage income. The proposed differential game theory model of the interaction between the public and the elites identifies two realistic open loop Nash and three Stackelberg scenarios for the management of the commodity driven budget surplus. Based on the conventional transversality conditions, the model detects a progressing decay of social cohesion and institutional quality. It shows that at the early stages of the exploitation of the natural resource riches, both the public and elites enable a rather modernization-friendly scenaros. At the rather advanced stages of the exploitation of natural resources both groups try to maximize their short-term private benefits and by doing so protract or even inhibit the process of economic modernization. The study finds that the savings behavior of the workers has a positive modernization effect. Nevertheless, workers’ savings cannot fully offset the negative modernization effects of the inferior management of natural resource revenues.en_US
dc.identifier.citationSadik-Zada, E.R., 2023. Resource rents, savings behavior, and scenarios of economic development. Resources Policy, 81, p.103258.en_US
dc.identifier.uri10.1016/j.resourpol.2022.103258
dc.identifier.urihttp://hdl.handle.net/10566/8796
dc.publisherElsevieren_US
dc.subjectDual economyen_US
dc.subjectNatural resourcesen_US
dc.subjectOpen loop solutionsen_US
dc.subjectNash equilibriumen_US
dc.subjectStackelberg equilibriumen_US
dc.subjectCapital-intensityen_US
dc.titleResource rents, savings behavior, and scenarios of economic developmenten_US
dc.typeArticleen_US

Files

Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
sadak-zada_resource rents, savings behavior_2023.pdf.pdf
Size:
2.08 MB
Format:
Adobe Portable Document Format
Description:
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Item-specific license agreed upon to submission
Description:
Download

Collections

Research Articles (Social Development- ISD)