IDEAS home Printed from https://ideas.repec.org/a/afc/cliome/v9y2015i3p333-358.html
   My bibliography  Save this article

Immunity from the resource curse? The long run impact of commodity price volatility: evidence from Canada, 1900–2005

Author

Listed:
  • Ian Keay

    (Department of Economics, Queen's University, Kingston, ON, Canada)

Abstract

This paper documents the channels through which commodity price volatility can affect resource intensive industries’ investment decisions, production levels and profitability. Over the very long run, the Canadian forestry sector was not immune from the negative effects of commodity price volatility. However, the long run averages mask dynamic and asymmetric patterns in the sector’s responses to price volatility. The supply of investment funds from formal-external sources was suppressed during episodes of high and rising commodity price volatility, but insensitive to low and falling volatility. These effects weakened as the economy matured. The accumulation of reproducible and natural capital was affected by commodity price volatility through an investment supply channel that was also asymmetric, but in this case, the effect was strongest during low and falling volatility. These results show how a maturing economy with diversified investment opportunities can become increasingly immune from the negative effects of commodity price volatility.

Suggested Citation

  • Ian Keay, 2015. "Immunity from the resource curse? The long run impact of commodity price volatility: evidence from Canada, 1900–2005," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 9(3), pages 333-358, september.
    • Handle: RePEc:afc:cliome:v:9:y:2015:i:3:p:333-358
    DOI: 10.1007/s11698-014-0118-6
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1007/s11698-014-0118-6
    Download Restriction: Access to full text is restricted to journal subscribers
    File URL: https://libkey.io/10.1007/s11698-014-0118-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. I. F. Kuzminov & P. A. Lobanova, 2021. "Economic and Geographical Analysis of the Current State of the Pulp and Paper Industry of European Russia: How is Text Mining Helpful?," Regional Research of Russia, Springer, vol. 11(4), pages 477-489, October.
    2. Randall Morck & Masao Nakamura, 2018. "Japan's Ultimately Unaccursed Natural Resources-financed Industrialization," NBER Chapters, in: Corporate Governance (NBER-TCER-CEPR Conference), National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    Commodity price volatility; Resource-based growth; Early industrialization;
    All these keywords.

    JEL classification:

    • N52 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - U.S.; Canada: 1913-
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:afc:cliome:v:9:y:2015:i:3:p:333-358. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/afcccea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.