Natural Resources, Physical Capital and Institutions : Evidence from Eurasia

Natural resource abundance can lead to strong economic growth if resource rents are well invested in physical assets and other forms of productive capital. This paper focuses on the case of the resource-abundant economies in Eurasia, which has been...

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Main Author:	Vandycke, Nancy
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2013
Subjects:	ACCESSIBILITY AFFILIATED ORGANIZATIONS AGRICULTURE AIR AIR POLLUTION AIRPORT ALTERNATIVE ENERGIES ASSETS BENCHMARKS CLIMATE CHANGE COMMODITY PRICES COMPETITIVENESS CONGESTION COUNTRY COMPARISONS DEVELOPMENT POLICY DOMESTIC INVESTMENT DRIVING ECONOMIC ASSISTANCE ECONOMIC GEOGRAPHY ECONOMIC GROWTH ECONOMIC OUTLOOK ECONOMIC POLICIES ELECTRICITY EMPLOYMENT EXPORTS EXPROPRIATION FARES FINANCIAL CRISIS FISCAL POLICY FIXED ASSETS FIXED CAPITAL FREIGHT FUEL FUEL CONSUMPTION FUTURE RESEARCH GAS PRICES GDP GDP PER CAPITA GROWTH RATE HIGHWAYS HUMAN CAPITAL INDEX NUMBERS INFLATION INFLATION RATE INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE PROJECTS INLAND TRANSPORT INLAND WATERWAYS INTERNATIONAL DEVELOPMENT INVENTORIES INVESTMENT MANAGEMENT INVESTMENT RATE INVESTMENT RATES INVESTMENT REQUIREMENTS INVESTMENT SPENDING LAND USE LONG-DISTANCE MACROECONOMIC POLICY MOTOR VEHICLES NATIONAL ECONOMY NATURAL ENDOWMENTS NATURAL RESOURCES NET SAVINGS NOW ACCOUNTS PASSENGER TRAFFIC PER CAPITA INCOME POLITICAL ECONOMY PRICE STABILITY PRIVATE INVESTMENT PRIVATE INVESTMENTS PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PRIVATIZATION PRODUCTIVE ASSETS PRODUCTIVE CAPITAL PRODUCTIVITY PRODUCTIVITY GROWTH PUBLIC PUBLIC INVESTMENT PUBLIC SECTOR PUBLIC SERVICES PUBLIC TRANSPORT QUALITY OF TRANSPORT RAIL RAIL NETWORKS RAILWAY RAILWAY LINES RAILWAYS RENTS ROAD ROAD CONDITIONS ROAD DESIGN ROAD DESIGN STANDARDS ROAD MAINTENANCE ROAD NETWORK ROAD QUALITY ROAD TRAFFIC ROADS RUNWAY RUNWAYS SANITATION SOCIAL WELFARE SUBWAY SUBWAY LINES TAX TAXATION TELECOMMUNICATIONS TOLL TOLL ROADS TOTAL FACTOR PRODUCTIVITY TRADE FLOWS TRADE VOLUME TRAFFIC SPEED TRAM TRANSACTION COSTS TRANSIT TRANSPORT TRANSPORT CORRIDORS TRANSPORT COSTS TRANSPORT INFRASTRUCTURE TRANSPORT SECTOR TRANSPORT SERVICES TRANSPORTATION TRANSPORTATION COSTS TUNNELS URBAN GROWTH URBANIZATION VOLUME OF TRAFFIC WATER USE WEALTH
Online Access:	http://documents.worldbank.org/curated/en/2013/08/18148311/natural-resources-physical-capital-institutions-evidence-eurasia http://hdl.handle.net/10986/16019

id	okr-10986-16019
recordtype	oai_dc
spelling	okr-10986-160192021-04-23T14:03:27Z Natural Resources, Physical Capital and Institutions : Evidence from Eurasia Vandycke, Nancy ACCESSIBILITY AFFILIATED ORGANIZATIONS AGRICULTURE AIR AIR POLLUTION AIRPORT ALTERNATIVE ENERGIES ASSETS BENCHMARKS CLIMATE CHANGE COMMODITY PRICES COMPETITIVENESS CONGESTION COUNTRY COMPARISONS DEVELOPMENT POLICY DOMESTIC INVESTMENT DRIVING ECONOMIC ASSISTANCE ECONOMIC GEOGRAPHY ECONOMIC GROWTH ECONOMIC OUTLOOK ECONOMIC POLICIES ELECTRICITY EMPLOYMENT EXPORTS EXPROPRIATION FARES FINANCIAL CRISIS FISCAL POLICY FIXED ASSETS FIXED CAPITAL FREIGHT FUEL FUEL CONSUMPTION FUTURE RESEARCH GAS PRICES GDP GDP PER CAPITA GROWTH RATE HIGHWAYS HUMAN CAPITAL INDEX NUMBERS INFLATION INFLATION RATE INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE PROJECTS INLAND TRANSPORT INLAND WATERWAYS INTERNATIONAL DEVELOPMENT INVENTORIES INVESTMENT MANAGEMENT INVESTMENT RATE INVESTMENT RATES INVESTMENT REQUIREMENTS INVESTMENT SPENDING LAND USE LONG-DISTANCE MACROECONOMIC POLICY MOTOR VEHICLES NATIONAL ECONOMY NATURAL ENDOWMENTS NATURAL RESOURCES NET SAVINGS NOW ACCOUNTS PASSENGER TRAFFIC PER CAPITA INCOME POLITICAL ECONOMY PRICE STABILITY PRIVATE INVESTMENT PRIVATE INVESTMENTS PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PRIVATIZATION PRODUCTIVE ASSETS PRODUCTIVE CAPITAL PRODUCTIVITY PRODUCTIVITY GROWTH PUBLIC PUBLIC INVESTMENT PUBLIC SECTOR PUBLIC SERVICES PUBLIC TRANSPORT QUALITY OF TRANSPORT RAIL RAIL NETWORKS RAILWAY RAILWAY LINES RAILWAYS RENTS ROAD ROAD CONDITIONS ROAD DESIGN ROAD DESIGN STANDARDS ROAD MAINTENANCE ROAD NETWORK ROAD QUALITY ROAD TRAFFIC ROADS RUNWAY RUNWAYS SANITATION SOCIAL WELFARE SUBWAY SUBWAY LINES TAX TAXATION TELECOMMUNICATIONS TOLL TOLL ROADS TOTAL FACTOR PRODUCTIVITY TRADE FLOWS TRADE VOLUME TRAFFIC SPEED TRAM TRANSACTION COSTS TRANSIT TRANSPORT TRANSPORT CORRIDORS TRANSPORT COSTS TRANSPORT INFRASTRUCTURE TRANSPORT SECTOR TRANSPORT SERVICES TRANSPORTATION TRANSPORTATION COSTS TUNNELS URBAN GROWTH URBANIZATION VOLUME OF TRAFFIC WATER USE WEALTH Natural resource abundance can lead to strong economic growth if resource rents are well invested in physical assets and other forms of productive capital. This paper focuses on the case of the resource-abundant economies in Eurasia, which has been less documented in the literature on natural resource-led development than other parts of the world. The analysis shows that the stock of productive physical assets is relatively low, contrary to common perceptions about the Soviet system. The infrastructure that was inherited from the Soviet system primarily serves to meet basic human needs; few assets support the development of competitive and sustainable economies. At a deeper level, the paper documents that low accumulation of physical capital over the past two decades has been driven by weak institutions and economic policies associated with the presence of resource rents, along with a poor public investment management process. This paper complements existing empirical studies by presenting evidence on the mechanisms through which natural resources and physical capital have interacted in setting Eurasian economies on a fragile development path. 2013-10-02T17:54:19Z 2013-10-02T17:54:19Z 2013-08 http://documents.worldbank.org/curated/en/2013/08/18148311/natural-resources-physical-capital-institutions-evidence-eurasia http://hdl.handle.net/10986/16019 English en_US Policy Research Working Paper;No. 6586 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific Europe and Central Asia South Asia Europe and Central Asia Russian Federation
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ACCESSIBILITY AFFILIATED ORGANIZATIONS AGRICULTURE AIR AIR POLLUTION AIRPORT ALTERNATIVE ENERGIES ASSETS BENCHMARKS CLIMATE CHANGE COMMODITY PRICES COMPETITIVENESS CONGESTION COUNTRY COMPARISONS DEVELOPMENT POLICY DOMESTIC INVESTMENT DRIVING ECONOMIC ASSISTANCE ECONOMIC GEOGRAPHY ECONOMIC GROWTH ECONOMIC OUTLOOK ECONOMIC POLICIES ELECTRICITY EMPLOYMENT EXPORTS EXPROPRIATION FARES FINANCIAL CRISIS FISCAL POLICY FIXED ASSETS FIXED CAPITAL FREIGHT FUEL FUEL CONSUMPTION FUTURE RESEARCH GAS PRICES GDP GDP PER CAPITA GROWTH RATE HIGHWAYS HUMAN CAPITAL INDEX NUMBERS INFLATION INFLATION RATE INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE PROJECTS INLAND TRANSPORT INLAND WATERWAYS INTERNATIONAL DEVELOPMENT INVENTORIES INVESTMENT MANAGEMENT INVESTMENT RATE INVESTMENT RATES INVESTMENT REQUIREMENTS INVESTMENT SPENDING LAND USE LONG-DISTANCE MACROECONOMIC POLICY MOTOR VEHICLES NATIONAL ECONOMY NATURAL ENDOWMENTS NATURAL RESOURCES NET SAVINGS NOW ACCOUNTS PASSENGER TRAFFIC PER CAPITA INCOME POLITICAL ECONOMY PRICE STABILITY PRIVATE INVESTMENT PRIVATE INVESTMENTS PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PRIVATIZATION PRODUCTIVE ASSETS PRODUCTIVE CAPITAL PRODUCTIVITY PRODUCTIVITY GROWTH PUBLIC PUBLIC INVESTMENT PUBLIC SECTOR PUBLIC SERVICES PUBLIC TRANSPORT QUALITY OF TRANSPORT RAIL RAIL NETWORKS RAILWAY RAILWAY LINES RAILWAYS RENTS ROAD ROAD CONDITIONS ROAD DESIGN ROAD DESIGN STANDARDS ROAD MAINTENANCE ROAD NETWORK ROAD QUALITY ROAD TRAFFIC ROADS RUNWAY RUNWAYS SANITATION SOCIAL WELFARE SUBWAY SUBWAY LINES TAX TAXATION TELECOMMUNICATIONS TOLL TOLL ROADS TOTAL FACTOR PRODUCTIVITY TRADE FLOWS TRADE VOLUME TRAFFIC SPEED TRAM TRANSACTION COSTS TRANSIT TRANSPORT TRANSPORT CORRIDORS TRANSPORT COSTS TRANSPORT INFRASTRUCTURE TRANSPORT SECTOR TRANSPORT SERVICES TRANSPORTATION TRANSPORTATION COSTS TUNNELS URBAN GROWTH URBANIZATION VOLUME OF TRAFFIC WATER USE WEALTH
spellingShingle	ACCESSIBILITY AFFILIATED ORGANIZATIONS AGRICULTURE AIR AIR POLLUTION AIRPORT ALTERNATIVE ENERGIES ASSETS BENCHMARKS CLIMATE CHANGE COMMODITY PRICES COMPETITIVENESS CONGESTION COUNTRY COMPARISONS DEVELOPMENT POLICY DOMESTIC INVESTMENT DRIVING ECONOMIC ASSISTANCE ECONOMIC GEOGRAPHY ECONOMIC GROWTH ECONOMIC OUTLOOK ECONOMIC POLICIES ELECTRICITY EMPLOYMENT EXPORTS EXPROPRIATION FARES FINANCIAL CRISIS FISCAL POLICY FIXED ASSETS FIXED CAPITAL FREIGHT FUEL FUEL CONSUMPTION FUTURE RESEARCH GAS PRICES GDP GDP PER CAPITA GROWTH RATE HIGHWAYS HUMAN CAPITAL INDEX NUMBERS INFLATION INFLATION RATE INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE PROJECTS INLAND TRANSPORT INLAND WATERWAYS INTERNATIONAL DEVELOPMENT INVENTORIES INVESTMENT MANAGEMENT INVESTMENT RATE INVESTMENT RATES INVESTMENT REQUIREMENTS INVESTMENT SPENDING LAND USE LONG-DISTANCE MACROECONOMIC POLICY MOTOR VEHICLES NATIONAL ECONOMY NATURAL ENDOWMENTS NATURAL RESOURCES NET SAVINGS NOW ACCOUNTS PASSENGER TRAFFIC PER CAPITA INCOME POLITICAL ECONOMY PRICE STABILITY PRIVATE INVESTMENT PRIVATE INVESTMENTS PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PRIVATIZATION PRODUCTIVE ASSETS PRODUCTIVE CAPITAL PRODUCTIVITY PRODUCTIVITY GROWTH PUBLIC PUBLIC INVESTMENT PUBLIC SECTOR PUBLIC SERVICES PUBLIC TRANSPORT QUALITY OF TRANSPORT RAIL RAIL NETWORKS RAILWAY RAILWAY LINES RAILWAYS RENTS ROAD ROAD CONDITIONS ROAD DESIGN ROAD DESIGN STANDARDS ROAD MAINTENANCE ROAD NETWORK ROAD QUALITY ROAD TRAFFIC ROADS RUNWAY RUNWAYS SANITATION SOCIAL WELFARE SUBWAY SUBWAY LINES TAX TAXATION TELECOMMUNICATIONS TOLL TOLL ROADS TOTAL FACTOR PRODUCTIVITY TRADE FLOWS TRADE VOLUME TRAFFIC SPEED TRAM TRANSACTION COSTS TRANSIT TRANSPORT TRANSPORT CORRIDORS TRANSPORT COSTS TRANSPORT INFRASTRUCTURE TRANSPORT SECTOR TRANSPORT SERVICES TRANSPORTATION TRANSPORTATION COSTS TUNNELS URBAN GROWTH URBANIZATION VOLUME OF TRAFFIC WATER USE WEALTH Vandycke, Nancy Natural Resources, Physical Capital and Institutions : Evidence from Eurasia
geographic_facet	East Asia and Pacific Europe and Central Asia South Asia Europe and Central Asia Russian Federation
relation	Policy Research Working Paper;No. 6586
description	Natural resource abundance can lead to strong economic growth if resource rents are well invested in physical assets and other forms of productive capital. This paper focuses on the case of the resource-abundant economies in Eurasia, which has been less documented in the literature on natural resource-led development than other parts of the world. The analysis shows that the stock of productive physical assets is relatively low, contrary to common perceptions about the Soviet system. The infrastructure that was inherited from the Soviet system primarily serves to meet basic human needs; few assets support the development of competitive and sustainable economies. At a deeper level, the paper documents that low accumulation of physical capital over the past two decades has been driven by weak institutions and economic policies associated with the presence of resource rents, along with a poor public investment management process. This paper complements existing empirical studies by presenting evidence on the mechanisms through which natural resources and physical capital have interacted in setting Eurasian economies on a fragile development path.
format	Publications & Research :: Policy Research Working Paper
author	Vandycke, Nancy
author_facet	Vandycke, Nancy
author_sort	Vandycke, Nancy
title	Natural Resources, Physical Capital and Institutions : Evidence from Eurasia
title_short	Natural Resources, Physical Capital and Institutions : Evidence from Eurasia
title_full	Natural Resources, Physical Capital and Institutions : Evidence from Eurasia
title_fullStr	Natural Resources, Physical Capital and Institutions : Evidence from Eurasia
title_full_unstemmed	Natural Resources, Physical Capital and Institutions : Evidence from Eurasia
title_sort	natural resources, physical capital and institutions : evidence from eurasia
publisher	World Bank, Washington, DC
publishDate	2013
url	http://documents.worldbank.org/curated/en/2013/08/18148311/natural-resources-physical-capital-institutions-evidence-eurasia http://hdl.handle.net/10986/16019
_version_	1764432047957344256

Natural Resources, Physical Capital and Institutions : Evidence from Eurasia

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