Template-type: ReDIF-Paper 1.0
Author-Name: Ziesemer, Thomas 
Author-Email: t.ziesemer@maastrichtuniversity.nl
Author-Workplace-Name: UNU-MERIT, and Maastricht University
Title: Growth with imported resources: On the sustainability of U.S. growth and foreign debt
Abstract: We provide a growth model with imported resources and foreign debt 
	 accumulation providing the basis for two questions and regression 
	 equations. 1) Under what conditions do growth rates of per capita income 
	 remain positive if imported inputs such as oil have increasing real 
	 prices? 2) Is accumulation of foreign debt driven by a current account 
	 deficit of which two percent of the GDP stem from oil imports, 
	 sustainable? For both questions we provide estimates for the USA with 
	 the following results. Oil price growth rates have only a marginal 
	 impact on those of GDP per capita as long as they exceed inflation rates 
	 by not much more than they did in the past. The US foreign debt/GDP 
	 ratio follows an unstable difference equation and therefore is not 
	 sustainable. We briefly discuss possible future stabilization through 
	 the market and through policies.
Classification-JEL: F21, O41, Q01
Keywords: capital movements, growth, sustainability
Series: UNU-MERIT Working Papers
Creation-Date: 2009
Number: 2009-028
File-URL: https://unu-merit.nl/publications/wppdf/2009/wp2009-028.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2009028