Extractive revenues and government spending: Short- versus long-term considerations

Frederick (Rick) van der Ploeg and Anthony Venables

No wp-2017-45, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: The prescription of optimally managing natural resource revenue windfalls by smoothing consumption across generations using an intergenerational sovereign wealth fund that only invests in foreign assets is not appropriate for resource-rich developing economies. It is better for these economies to use their windfalls to boost investment in the domestic economy, especially when they confront capital scarcity and have poor access to international capital markets.

Keywords: Extractives; Revenues (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (7)

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