Resource-based cities and the Dutch disease

Takatsuka, Hajime; Zeng, Dao‐Zhi; Zhao, Laixun

doi:10.1016/j.reseneeco.2015.01.003

“…The function (23) is linear and increasing: given the nature of the technological spillovers (national), the greater the concentration of firms, the lower the costs of innovation and the higher the growth rate. The function (27) is convex and decreasing 6 .…”

Section: World Income Distributionmentioning

confidence: 99%

“…In turn, the distribution of economic activity also affects the equilibrium stock of the natural resource. In a related research, Takatsuka et al (2015) study how resource development affects the industrialization of cities and regions using a New Economic Geography theoretical framework with transport costs. Our model offers a new complementary perspective, adding an endogenous growth mechanism.…”

Section: Introductionmentioning

confidence: 99%

Natural resources, economic growth and geography

González‐Val

¹

,

Pueyo

²

2019

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In this paper we discuss the relationship between economic growth and natural resources at a global level, taking into account geography. With this aim, our model integrates elements of the theories of endogenous growth, natural resources and new economic geography. We find that an increase in the world growth rate can lead to a higher depletion of the natural resources following an increase in the world demand due to expansion in population. However, the consideration of geography and growth mechanisms make the relationship between growth and natural resources more complex, and can even lead to the opposite conclusion when the forces behind growth are different from world demand. Indeed, either a reduction in transport costs or an increase in R&D productivity appears to be able to generate a faster growth compatible with a lower depletion of natural resources. Abstract:In this paper we discuss the relationship between economic growth and natural resources at a global level, taking into account geography. With this aim, our model integrates elements of the theories of endogenous growth, natural resources and new economic geography. We find that an increase in the world growth rate can lead to a higher depletion of the natural resources following an increase in the world demand due to expansion in population. However, the consideration of geography and growth mechanisms make the relationship between growth and natural resources more complex, and can even lead to the opposite conclusion when the forces behind growth are different from world demand. Indeed, either a reduction in transport costs or an increase in R&D productivity appears to be able to generate a faster growth compatible with a lower depletion of natural resources.

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“…. (27) Thus far, we have obtained two equations, (23) and (27), representing, respectively, the labour and capital markets equilibrium condition and the differentiated goods market equilibrium condition. These functions relate the growth rate with the spatial distribution of firms, and define the equilibrium values of these variables.…”

Section: World Income Distributionmentioning

confidence: 99%

“…The function (23) is linear and increasing: given the nature of the technological spillovers (national), the greater the concentration of firms, the lower the costs of innovation and the higher the growth rate. The function (27) is convex and decreasing 6 .…”

Section: World Income Distributionmentioning

confidence: 99%

Natural Resources, Economic Growth and Geography

González‐Val

¹

,

Pueyo

²

2018

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In this paper we discuss the relationship between economic growth and natural resources at a global level, taking into account geography. With this aim, our model integrates elements of the theories of endogenous growth, natural resources and new economic geography. We find that an increase in the world growth rate can lead to a higher depletion of the natural resources following an increase in the world demand due to expansion in population. However, the consideration of geography and growth mechanisms make the relationship between growth and natural resources more complex, and can even lead to the opposite conclusion when the forces behind growth are different from world demand. Indeed, either a reduction in transport costs or an increase in R&D productivity appears to be able to generate a faster growth compatible with a lower depletion of natural resources.

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“…As mentioned above, the present literature on local political incentives is generally focused on economic growth, while research on urban resource development is focused on the weak economic growth of cities, reduced social and economic welfare [17], Dutch disease and concentration of manufacturing in the same region [18], low efficiency of resource utilization [19], and evaluation of environmental pollution in resource-oriented cities [20,21]. Research directly or indirectly related to this thesis is grouped into two types.…”

Section: Literature Overviewmentioning

confidence: 99%

How Have Political Incentives for Local Officials Reduced Environmental Pollution in Resource-Depleted Cities?

Zhang

¹

,

Xiong

²

,

Qiu

³

et al. 2017

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Chinese resource-exhausted cities face more severe environmental pollution problems than other cities. In addressing these problems, the way local officials (usually senior party and government leaders) operate is very important, as their focus on political achievements may complicate how they manage environmental pollution in these cities. On the one hand, the traditional Gross Domestic Product-based quest for political achievement may lead top leaders to de-emphasize environmental pollution. On the other hand, changes made in 2003 to the way the performance of Chinese officials is evaluated have encouraged some local senior party and government leaders to pay more attention to environmental problems. Based on this, we analyze the relationship between political incentives and environmental pollution by applying the 2004-2014 panel data from 37 resource-exhausted cities. The findings reveal that firstly, among the factors which impact the environmental pollution of resource-exhausted cities, investment in fixed assets, foreign direct investment, industrial structure, per-capita education expenditure, and population density do not have a significant impact, thus indicating that local openness levels, the degree of industrial upgrading, and local investment in fixed assets are not the key variables in environmental pollution control. Secondly, the extent to which officials vie for political achievement affects environmental pollution in resource-exhausted cities. This depends upon whether the officials are municipal party secretaries or mayors; the former play a greater dynamic role in environmental pollution and have stronger robustness than the latter. The conclusion verifies both the existing authority structure of China and its effectiveness in the control of environmental pollution of resource-exhausted cities. That is to say, in contrast to the principles of the party committees, the mayors are in a subordinate position and often fail to fully and effectively exercise their functions. Accordingly, we point out that the selection of municipal party secretaries, rather than mayors, is particularly important in coming to terms with local environmental pollution.

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Resource-based cities and the Dutch disease

Cited by 38 publications

References 21 publications

Natural resources, economic growth and geography

Natural resources, economic growth and geography

Natural Resources, Economic Growth and Geography

How Have Political Incentives for Local Officials Reduced Environmental Pollution in Resource-Depleted Cities?

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