Anti-cycle policy in the countries with a raw-material dependent economy

V. Bashko

Economy and Forecasting, 2012, issue 2, 47-59

Abstract: The research proves that for the countries with a raw-material dependent economy,) it is insufficient to use the traditional mechanism of anti-cycle fiscal policy, where the state performs the single function of borrower, But it is necessary to create sovereign reserve funds Whose main function is to accumulate and manage the funds appearing from the surplus during favorable conjuncture and cover the budget deficit during the conjuncture decline. As Ukraine's economy suffers from the dynamics of raw material prices, the problem may be solved if the state collects all revenues from the natural rent and properly spend them during the crises. To prove the above mentioned statements, the author has used the most popular method to refine revenues from natural rent by comparing the profitability rates of the companies receiving the revenues from natural rent with the normative profitability.

Date: 2012
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