Commodity Prices and Growth. (13th December 2017)

• Record Type: Journal Article
• Authors: Ferraro, Domenico; Peretto, Pietro F.
• Is Part Of: Economic journal. Volume 128:Number 616(2018)
• Page Start: 3242
• Page End: 3265
• Publication Date: 2017-12-13
• Subjects: Economics -- Periodicals; Économie politique -- Périodiques; 330.05
• DOI: 10.1111/ecoj.12559
• Languages: English
• ISSNs: 0013-0133

Abstract

Abstract: In this article, we propose an endogenous growth model of commodity‐rich economies in which: ( i ) long‐run (steady‐state) growth is endogenous and yet independent of commodity prices; ( ii ) commodity prices affect short‐run growth through transitional dynamics; and ( iii ) the status of net commodity importer/exporter is endogenous. We argue that these predictions are consistent with historical evidence from the 19th to the 21st century.