Book contents
- Understanding and Avoiding the Oil Curse in Resource-rich Arab Economies
- Understanding and Avoiding the Oil Curse in Resource-rich Arab Economies
- Copyright page
- Contents
- Figures
- Tables
- Contributors
- Foreword
- Acknowledgments
- 1 Overview of Context, Issues and Summary
- 2 The Global Impact of the Systemic Economies and MENA Business Cycles1
- 3 Real Exchange Rates and Export Performance in Oil-dependent Arab Economies*
- 4 Dutch Disease in the Services Sector
- 5 The Political Economy of Public Sector Employment in Resource-dependent Countries1
- 6 The Oil Curse and Labor Markets
- 7 Resource Rents, Political Institutions and Economic Growth*
- 8 Fiscal Institutions in Resource-rich Economies
- 9 Savings and Investment Decisions from Natural Resource Revenues
- 10 Labor Market Heterogeneity and Optimal Exchange Rate Regimes in Resource-rich Arab Countries
- 11 The Institutional Curse of Natural Resources in the Arab World1
- 12 Has the UAE Escaped the Oil Curse?
- 13 Understanding and Avoiding the Oil Curse in Sudan
- Index
- References
3 - Real Exchange Rates and Export Performance in Oil-dependent Arab Economies*
Published online by Cambridge University Press: 05 July 2016
- Understanding and Avoiding the Oil Curse in Resource-rich Arab Economies
- Understanding and Avoiding the Oil Curse in Resource-rich Arab Economies
- Copyright page
- Contents
- Figures
- Tables
- Contributors
- Foreword
- Acknowledgments
- 1 Overview of Context, Issues and Summary
- 2 The Global Impact of the Systemic Economies and MENA Business Cycles1
- 3 Real Exchange Rates and Export Performance in Oil-dependent Arab Economies*
- 4 Dutch Disease in the Services Sector
- 5 The Political Economy of Public Sector Employment in Resource-dependent Countries1
- 6 The Oil Curse and Labor Markets
- 7 Resource Rents, Political Institutions and Economic Growth*
- 8 Fiscal Institutions in Resource-rich Economies
- 9 Savings and Investment Decisions from Natural Resource Revenues
- 10 Labor Market Heterogeneity and Optimal Exchange Rate Regimes in Resource-rich Arab Countries
- 11 The Institutional Curse of Natural Resources in the Arab World1
- 12 Has the UAE Escaped the Oil Curse?
- 13 Understanding and Avoiding the Oil Curse in Sudan
- Index
- References
Summary
Diversifying oil economies toward manufacturing and more sophisticated products and services is one of the most pressing public policy challenges facing these countries. This paper provides new evidence about the impact of oil rents and real exchange rate (RER) undervaluation on various measures of exports, using a global sample spanning 1980–2011. Our results suggest that RER undervaluation can ameliorate the negative impact of oil rents on exports, and that it can be particularly effective in countries with underdeveloped financial markets or low institutional development. In the light of these findings, the paper argues that a strategy of depreciating the real currency can be a viable, albeit second best, industrial policy choice in order to promote export diversification, technical upgrading and export sophistication in institutionally-deficient oil and mineral-dependent economies. Moreover, this type of public policy can minimize the reliance on traditional vertical industrial policy, which usually requires high initial institutional capacity in order to succeed.
- Type
- Chapter
- Information
- Publisher: Cambridge University PressPrint publication year: 2016
References
- 1
- Cited by