Optimum Depletion of Oil Resources in a Developing Country

Abstract

The majority of resource-based developing countries finance a high percentage of their development efforts through extraction and export of nonrenewable natural resources. Though the extraction and export policies of these countries might be subject to noneconomic international causes and effects (i.e., those that do not easily yield to empirical analysis (Mikdashi, 1976)), the need for each country to plan and implement an optimal and consistent policy in this regard is already well established (Meier 1984; Kemp and Long 1984; Neary and Wijnbergen 1986).