Arbeitspapier
Endogenous Growth, Asymmetric Trade and Resource Taxation
Since 1980, the aggregate income of oil-exporting countries relative to that of oil- poor countries has been remarkably constant despite structural gaps in productivity growth rates. This stylized fact is analyzed in a two-country model where resource- poor (Home) and resource-rich (Foreign) economies display productivity differences but stable income shares due to terms-of-trade dynamics. We show that Home's income share is positively related to the national tax on domestic resource use, a prediction confirmed by dynamic panel estimations for sixteen oil-poor economies. National governments have incentives to deviate from both efficient and laissez-faire allocations. In Home, increasing the oil tax improves welfare through a rent-transfer mechanism. In Foreign, subsidies (taxes) on domestic oil use improve welfare if R&D productivity is lower (higher) than in Home.
- Language
-
Englisch
- Bibliographic citation
-
Series: Economics Working Paper Series ; No. 10/132
- Classification
-
Wirtschaft
Economic Growth of Open Economies
Economic Growth and Aggregate Productivity: General
- Subject
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Endogenous Growth
Exhaustible Resources
International Trade
Erschöpfbare Ressourcen
Rohstoffsteuer
Wirtschaftswachstum
Zwei-Länder-Modell
Endogenes Wachstumsmodell
Theorie
- Event
-
Geistige Schöpfung
- (who)
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Bretschger, Lucas
Valente, Simone
- Event
-
Veröffentlichung
- (who)
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ETH Zurich, CER-ETH - Center of Economic Research
- (where)
-
Zurich
- (when)
-
2010
- DOI
-
doi:10.3929/ethz-a-006145107
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Bretschger, Lucas
- Valente, Simone
- ETH Zurich, CER-ETH - Center of Economic Research
Time of origin
- 2010
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