 Fiscal dependence on extractive revenues: Measurement and conceptsKyle McNabb Resources Policy, 2023, vol. 86, issue PA Abstract: This paper proposes a new measure of Fiscal Dependence on Extractive revenues: FDE. The FDE estimates, simply, the extent to which extractive-producing countries can fund day-to-day government spending with non-extractive revenues. By focusing specifically on the fiscal aspect of dependency, - and tying the earning of extractive revenues to government expenditure needs - the FDE allows us to better understand those contexts where countries are dependent on the revenue from extractive industries to fund the day-to-day spending of government, versus those where extractive revenues are more likely to represent a boon, or a stream that can be invested in the future wellbeing of a country's citizens. Whilst fairly strongly correlated with existing measures of extractive dependence, the FDE ultimately tells a different story regarding countries' fiscal positions and resulting vulnerability to shocks to revenue or government spending. Amongst extractive-producing countries, fiscal dependency is correlated with lower growth, human development and levels of democracy, on average. Keywords: Extractives; Government revenues; Taxation; Resource curse (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:86:y:2023:i:pa:s0301420723008401 DOI: 10.1016/j.resourpol.2023.104129 Access Statistics for this article Resources Policy is currently edited by R. G. Eggert More articles in Resources Policy from Elsevier |
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