Korea, Rep. | 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 Korea
Records
63
Source
Korea, Rep. | Mineral rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.04249942
1971 0.02865544
1972 0.02797912
1973 0.16574522
1974 0.18165493
1975 0.03657016
1976 0.03114574
1977 0.02293966
1978 0.01176618
1979 0.01911071
1980 0.04474813
1981 0.02004732
1982 0.0202437
1983 0.02301162
1984 0.01756678
1985 0.01510246
1986 0.01464784
1987 0.02514949
1988 0.06341503
1989 0.05475791
1990 0.02376284
1991 0.00364583
1992 0.00418983
1993 0.00119189
1994 0.00320897
1995 0.0101144
1996 0.00802268
1997 0.00766271
1998 0.01693242
1999 0.0101216
2000 0.00865487
2001 0.01032224
2002 0.01113364
2003 0.01296015
2004 0.00036708
2005 0.00157165
2006 0.00204711
2007 0.0024266
2008 0.003921
2009 0.00235547
2010 0.00478947
2011 0.00527297
2012 0.02088636
2013 0.00424846
2014 0.00229588
2015 0.00083147
2016 0.00115995
2017 0.00103511
2018 0.00030806
2019 0.08106271
2020 0.08435817
2021 0.00048329
2022

Korea, Rep. | 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 Korea
Records
63
Source