Fiji | 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
Republic of Fiji
Records
63
Source
Fiji | Mineral rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
0 1970
0 1971
0 1972
0.34022773 1973
0.77467369 1974
0.54066556 1975
0.15433421 1976
0.20856523 1977
0.19262762 1978
0.44987027 1979
0.92757574 1980
0.73007118 1981
0.81729902 1982
0.94445217 1983
0.84754343 1984
0.86613163 1985
1.36376462 1986
1.98192483 1987
2.07949998 1988
2.02319346 1989
1.69030391 1990
0.71900978 1991
0.55034658 1992
0.58241656 1993
0.68705513 1994
0.58523387 1995
0.52486305 1996
0.43535984 1997
0.42075828 1998
0.39596075 1999
0.47408064 2000
0.44421637 2001
0.51658076 2002
0.46373952 2003
0.52150799 2004
0.49385897 2005
0.50182541 2006
0.21969622 2007
0.25928717 2008
0.49780791 2009
1.10422229 2010
1.04900713 2011
1.14080956 2012
0.51517392 2013
0.37660584 2014
0.31296636 2015
0.35691145 2016
0.35164562 2017
0.32414701 2018
0.31262993 2019
0.47958281 2020
1.12613724 2021
2022

Fiji | 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
Republic of Fiji
Records
63
Source