Natural Resources and Rent Seeking Collusion in the  Context of Dutch Disease

Muradov Anar

doi:https://dx.doi.org/10.26650/ISTJECON2022-1063190

Research Article

DOI :10.26650/ISTJECON2022-1063190 IUP :10.26650/ISTJECON2022-1063190 Full Text (PDF)

Natural Resources and Rent Seeking Collusion in the Context of Dutch Disease

A new model is proposed in this paper by concentrating on the Dutch disease phenomenon along with rent seeking to demonstrate how a natural resource abundance (or a resource boom) affects resource movement and national income under rent seeking collusion in the energy sector. Dutch disease and rent seeking problems are studied under the natural resource curse theory which states that countries with natural resources usually perform worse than resource-poor countries. The resource movement is considered one of the effects of the Dutch disease. The resource movement occurrence or the movement of labor inputs from services to the energy sector depends on the degree of the boom. The boom may also facilitate rent seeking depending on its degree and the number of firms in the energy sector. In the duopoly case (n=2), a sufficiently small degree of the boom is necessary for rent seeking to be facilitated. However, with more than two firms (n>2), rent seeking activities will not happen because profits in collusion will be less than those without collusion in the model. Hence, the paper analyzes rent seeking by concentrating on duopoly results (n=2). The impact of the boom on national income depends on parameter values.

Keywords: Collusion, Rent-seeking, Dutch disease

JEL Classification : D43 , O12 , O13

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APA

Muradov, A. (2022). Natural Resources and Rent Seeking Collusion in the Context of Dutch Disease. Istanbul Journal of Economics, 72(2), 599-623. https://doi.org/10.26650/ISTJECON2022-1063190

AMA

Muradov A. Natural Resources and Rent Seeking Collusion in the Context of Dutch Disease. Istanbul Journal of Economics. 2022;72(2):599-623. https://doi.org/10.26650/ISTJECON2022-1063190

ABNT

Muradov, A. Natural Resources and Rent Seeking Collusion in the Context of Dutch Disease. Istanbul Journal of Economics, [Publisher Location], v. 72, n. 2, p. 599-623, 2022.

Chicago: Author-Date Style

Muradov, Anar,. 2022. “Natural Resources and Rent Seeking Collusion in the Context of Dutch Disease.” Istanbul Journal of Economics 72, no. 2: 599-623. https://doi.org/10.26650/ISTJECON2022-1063190

Chicago: Humanities Style

Muradov, Anar,. “Natural Resources and Rent Seeking Collusion in the Context of Dutch Disease.” Istanbul Journal of Economics 72, no. 2 (Mar. 2023): 599-623. https://doi.org/10.26650/ISTJECON2022-1063190

Harvard: Australian Style

Muradov, A 2022, 'Natural Resources and Rent Seeking Collusion in the Context of Dutch Disease', Istanbul Journal of Economics, vol. 72, no. 2, pp. 599-623, viewed 28 Mar. 2023, https://doi.org/10.26650/ISTJECON2022-1063190

Harvard: Author-Date Style

Muradov, A. (2022) ‘Natural Resources and Rent Seeking Collusion in the Context of Dutch Disease’, Istanbul Journal of Economics, 72(2), pp. 599-623. https://doi.org/10.26650/ISTJECON2022-1063190 (28 Mar. 2023).

MLA

Muradov, Anar,. “Natural Resources and Rent Seeking Collusion in the Context of Dutch Disease.” Istanbul Journal of Economics, vol. 72, no. 2, 2022, pp. 599-623. [Database Container], https://doi.org/10.26650/ISTJECON2022-1063190

Vancouver

Muradov A. Natural Resources and Rent Seeking Collusion in the Context of Dutch Disease. Istanbul Journal of Economics [Internet]. 28 Mar. 2023 [cited 28 Mar. 2023];72(2):599-623. Available from: https://doi.org/10.26650/ISTJECON2022-1063190 doi: 10.26650/ISTJECON2022-1063190

ISNAD

Muradov, Anar. “Natural Resources and Rent Seeking Collusion in the Context of Dutch Disease”. Istanbul Journal of Economics 72/2 (Mar. 2023): 599-623. https://doi.org/10.26650/ISTJECON2022-1063190

Volume 72, Issue 22022, P. 599-623

TIMELINE

Submitted	26.01.2022
Accepted	06.09.2022
Published Online	16.12.2022

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