Theoretical and empirical applications of petroleum production function framework for analysis of the Phenomenon of Plenty
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The current study examines how analysis of the Phenomenon of Plenty, paradox of economic underperformance of resource-rich nations, could benefit from theoretical and empirical application of suggested petroleum production function framework, basing on sample oil-abundant countries of the Commonwealth of Independent States, in particular Russia, Azerbaijan, and Kazakhstan. Proposed approach displays capacity of oil-economy production function to shed light on larger scope of theoretical issues. Empirical testing of suggested theoretical framework exhibited ability of proxied components of devised production function, capturing main metrics of the Phenomenon of Plenty and additionally factoring in corruption, to exert a strong impact on the majority of twelve principal macroeconomic indicators monitored by CIS supra-national institutions: with most pronounced influence on gross domestic product, industrial production, capital investments, and export to CIS countries.
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