Alternative Explanation for the Resource Curse: The Income Effect Channel
Object category:
Elektronische Ressource
Person/Institution:
Publisher:
International Monetary Fund
Place of publication:
Washington, D.C
Date:
2009
Extent, illustration, format:
Online-Ressource (24 p)
Language:
Englisch
Providing institution:
Additional information
Abstract:
The paper provides an alternative explanation for the ""resource curse"" based on the income effect resulting from high government current spending in resource rich economies. Using a simple life cycle framework, we show that private investment in the non-resource sector is adversely affected if private agents expect extra government current spending financed through resource sector revenues in the future. This income channel of the resource curse is stronger for countries with lower degrees of openness and forward altruism. We empirically validate these findings by estimating non-hydrocarbon sector growth regressions using a panel of 25 oil-exporting countries over 1992-2005
Object text:
Alichi, Ali
Online-Ausg.
Online-Ausg.
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Contact
Universität Erfurt
Forschungsbibliothek Gotha
Schloss Friedenstein
Schlossplatz 1
99867 Gotha
+49 361 737-5540
bibliothek.gotha(at)uni-erfurt.de
Forschungsbibliothek Gotha
Schloss Friedenstein
Schlossplatz 1
99867 Gotha
+49 361 737-5540
bibliothek.gotha(at)uni-erfurt.de
Administrative details
Created:
2023-04-12
Last changed:
2023-01-26
Added to portal:
2023-04-12
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