Dominican Republic | Mineral rents (% of GDP)

Mineral rents are the difference between the value of production for a stock of minerals at world prices and their total costs of production. Minerals included in the calculation are tin, gold, lead, zinc, iron, copper, nickel, silver, bauxite, and phosphate. Development relevance: Accounting for the contribution of natural resources to economic output is important in building an analytical framework for sustainable development. In some countries earnings from natural resources, especially from fossil fuels and minerals, account for a sizable share of GDP, and much of these earnings come in the form of economic rents - revenues above the cost of extracting the resources. Natural resources give rise to economic rents because they are not produced. For produced goods and services competitive forces expand supply until economic profits are driven to zero, but natural resources in fixed supply often command returns well in excess of their cost of production. Rents from nonrenewable resources - fossil fuels and minerals - as well as rents from overharvesting of forests indicate the liquidation of a country's capital stock. When countries use such rents to support current consumption rather than to invest in new capital to replace what is being used up, they are, in effect, borrowing against their future. Statistical concept and methodology: The estimates of natural resources rents are calculated as the difference between the price of a commodity and the average cost of producing it. This is done by estimating the price of units of specific commodities and subtracting estimates of average unit costs of extraction or harvesting costs. These unit rents are then multiplied by the physical quantities countries extract or harvest to determine the rents for each commodity as a share of gross domestic product (GDP).
Publisher
The World Bank
Origin
Dominican Republic
Records
63
Source
Dominican Republic | Mineral rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.66693071
1971 0.72550223
1972 1.87456333
1973 2.58503066
1974 2.59898124
1975 2.08775491
1976 1.96511021
1977 1.70610544
1978 0.80525216
1979 2.00854537
1980 3.03791236
1981 1.90118635
1982 0.78264598
1983 1.04458976
1984 0.68325299
1985 1.41167154
1986 0.53793496
1987 1.17151096
1988 5.68337606
1989 4.45646101
1990 1.92925125
1991 1.33886482
1992 0.74714972
1993 0.23134042
1994 0.75201621
1995 1.09234745
1996 0.67115536
1997 0.46365724
1998 0.01630624
1999 0.16386053
2000 0.31705836
2001 0
2002 0.00818311
2003 0.51524156
2004 1.18793379
2005 0.70455261
2006 1.57147795
2007 2.49633606
2008 0.20383335
2009 0.09571228
2010 0.11627324
2011 0.29535395
2012 0.40467337
2013 0.97440086
2014 0.97334962
2015 0.4877947
2016 1.22105831
2017 0.98408437
2018 0.83234889
2019 1.02182094
2020 1.19539933
2021 2.04479019
2022

Dominican Republic | Mineral rents (% of GDP)

Mineral rents are the difference between the value of production for a stock of minerals at world prices and their total costs of production. Minerals included in the calculation are tin, gold, lead, zinc, iron, copper, nickel, silver, bauxite, and phosphate. Development relevance: Accounting for the contribution of natural resources to economic output is important in building an analytical framework for sustainable development. In some countries earnings from natural resources, especially from fossil fuels and minerals, account for a sizable share of GDP, and much of these earnings come in the form of economic rents - revenues above the cost of extracting the resources. Natural resources give rise to economic rents because they are not produced. For produced goods and services competitive forces expand supply until economic profits are driven to zero, but natural resources in fixed supply often command returns well in excess of their cost of production. Rents from nonrenewable resources - fossil fuels and minerals - as well as rents from overharvesting of forests indicate the liquidation of a country's capital stock. When countries use such rents to support current consumption rather than to invest in new capital to replace what is being used up, they are, in effect, borrowing against their future. Statistical concept and methodology: The estimates of natural resources rents are calculated as the difference between the price of a commodity and the average cost of producing it. This is done by estimating the price of units of specific commodities and subtracting estimates of average unit costs of extraction or harvesting costs. These unit rents are then multiplied by the physical quantities countries extract or harvest to determine the rents for each commodity as a share of gross domestic product (GDP).
Publisher
The World Bank
Origin
Dominican Republic
Records
63
Source