Dutch Disease in Post-Soviet Oil Exporting Countries: Impact of Real Appreciation on De-industrialization

Abstract

With the recent economic slowdown, there has been a growing concern that de-industrialization might result from resource abundance in the post-Soviet region. By using a comparative panel analysis of three countries of the post-Soviet region and 14 countries of selected oil exporters, this paper investigates whether real appreciation for the oil exporters contributed to de-industrialization in the region. We fail to find any evidence to support the claim that real appreciation caused de-industrialization in the region.