The Impact of Geography and Natural Resource Abundance on Growth in Central Asia

Levy Economics Institute of Bard College Working Paper No. 629

23 Pages Posted: 4 Nov 2010

See all articles by Jesus Felipe

Jesus Felipe

Asian Development Bank

Utsav Kumar

Asian Development Bank

Date Written: October 3, 2010

Abstract

This paper examines the growth experience of the Central Asian economies after the breakup of the Soviet Union. In particular, it evaluates the impact of being landlocked and resource rich. The main conclusions are: (1) Over the period 1994-2006, the landlocked resource-scarce developing countries of Central Asia grew at a slower pace than other landlocked resource-scarce developing countries; on the other hand, resource-rich developing countries in Central Asia grew at the same pace as other resource-rich developing economies. (2) Having “good” neighbors pays off in the form of growth spillovers; this calls for greater regional cooperation and enhanced regional integration through regional transport infrastructure, improved trade facilitation, and enhanced and coordinated economic policies. And (3) countries with a higher share of manufacturing exports in GDP grow faster, and the more sophisticated a country’s export basket, the higher its future growth; Central Asian countries should, therefore, take a more aggressive stance in supporting export diversification and upgrading.

Keywords: Central Asia, EXPY, Landlocked, Manufacturing Exports, Primary Exports, Resource-Rich

JEL Classification: O13, O14, O52, O57, Q33, Q34

Suggested Citation

Felipe, Jesus and Kumar, Utsav, The Impact of Geography and Natural Resource Abundance on Growth in Central Asia (October 3, 2010). Levy Economics Institute of Bard College Working Paper No. 629. Available at SSRN: https://ssrn.com/abstract=1702388 or http://dx.doi.org/10.2139/ssrn.1702388

Jesus Felipe (Contact Author)

Asian Development Bank ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

Utsav Kumar

Asian Development Bank ( email )

6 ADB Avenue
Central and West Asia Department
Mandaluyong City
Philippines

HOME PAGE: http://works.bepress.com/kumarutsav/

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