Diagnosing Dutch Disease: Does Russia Have the Symptoms?

34 Pages Posted: 8 May 2007

See all articles by Nienke Oomes

Nienke Oomes

International Monetary Fund (IMF)

Katerina Kalcheva

Morgan Stanley

Multiple version iconThere are 2 versions of this paper

Date Written: May 2007

Abstract

In this paper, we assess whether recent economic developments in Russia are symptomatic of Dutch Disease. We first provide a brief review of the literature on Dutch Disease and the natural resource curse. We then discuss the symptoms of Dutch Disease, which include (1) real exchange rate appreciation; (2) slower manufacturing growth; (3) faster service sector growth; and (4) higher overall wages. We test these predictions for Russia while carefully controlling for other factors that could have led to similar symptoms. We conclude that, while Russia has all of the symptoms, the diagnosis of Dutch Disease remains to be confirmed.

Suggested Citation

Oomes, Nienke and Kalcheva, Katerina, Diagnosing Dutch Disease: Does Russia Have the Symptoms? (May 2007). IMF Working Paper No. 07/102, Available at SSRN: https://ssrn.com/abstract=984607

Nienke Oomes (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Katerina Kalcheva

Morgan Stanley ( email )

1585 Broadway
New York, NY 10036
United States

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