Mineral resources and growth in a small, open economy. The Case of Israel

M. Shechter, R. Mayan, A. Breiner

Research output: Contribution to journalArticlepeer-review


The paper focuses on mineral resources availability and a country's long-term economic growth potential. Israel represents the case of a small, open, developed economy whose industry and agriculture vitally depend on imported raw materials of mineral origin (energy and non-fuel minerals), which in turn provide for the production of the country's exportable goods. A multisector, multi-period, inter-industry planning model is employed for analyzing the role of these natural resources in the development of the Israeli economy. The version of the model discussed here spans a thirty-year horizon, with six five-year periods. Its economic-engineering relationships of the production and consumption sectors of the economy serve to analyze the long-run growth potential under alternative assumptions. These relationships represent the interdependencies among 28 production sectors, consumption and investment activities, and the input of capital, labor energy, and imported raw materials. It allocates the available resources to achieve an optimal temporal consumption path. Balance of payment considerations, substitution possibilities (specially capital for energy), and international market developments are the main features of the various scenarios investigated.

Original languageEnglish
Pages (from-to)83-108
Number of pages26
JournalResources and Energy
Issue number1
StatePublished - Mar 1986

Bibliographical note

Funding Information:
*This research project was funded by the S. Neaman Institute for Advanced Studies in Science and Technology and the National Council for Research and Development. The authors wish to acknowledge the assistance of Professor M. Avriel’s Energy Research Group of the Technion-Israel Institute of Technology. Professor Harold Barnett helpfully read and commented on an earlier draft. We also appreciate an anonymous referee’s constructive remarks and suggestions.

ASJC Scopus subject areas

  • General Environmental Science
  • General Earth and Planetary Sciences


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