Oil Prices Impact on Economic Growth in Contemporary Russia: A Theoretical Interpretation

The paper discusses the theoretical impact of world oil prices on economic development and growth rate for the Russian economy. The long- and short-run mechanisms that oil price changes affect output are discussed. It is argued that the oil price changes influence on the output has significantly decreased compared with Russian economy recovery in the early 2000s. The main paper conclusion is that, based on the classical models, there are no arguments for the permanent oil prices increase affect the long-term economic growth, only short-term transient dynamics between two long-run equilibria may be interpreted.