The Russian Oil:Could be this time a blessing?

Abstract

This thesis aims at investigating the dependency of the Russian economy on natural resources, underlining the causes and the possible consequences of this growth’s model. The analysis tries to evaluate if the Russian manufacturing has contracted the “ Dutch Disease”, that is, if a boom in the oil and gas industry has led to a process of de-industrialization, directly through the resource movement effect and indirectly through the spending effect. In this investigation I will emphasize the role played by the learning curves as a crucial factor in determining the comparative advantages of a country, and why an excessive reliance on exports’ revenues may reduce the welfare of a nation in the long run. To conclude I want to say that Russia is an incredible case study testifying how being rich of natural resource endowments should be a dream for the wealth of a country, but in the majority of the cases turns into a nightmare.