Managing depleting gold revenues in Mali: An assessment of policy options

Fousseini Traore and Calvin Djiofack Zebaze

No 332467, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: This paper analyzes the impact of medium term policy options in the context of gold resources depletion in Mali. Using a recursive-dynamic computable general equilibrium (CGE) model calibrated to a 2006 Malian SAM, we assess the impact of two policy options in the context of gold resources depletion in Mali: the adoption of the permanent income hypothesis and a “borrow and invest” scenario consisting at boosting public investment by 5 percentage points of GDP. The depletion of gold resources in Mali would cause a substantial fall in GDP growth, and lead to unsustainable fiscal path if the government were to keep its current pattern of spending. Adopting either the “borrow and invest” fiscal approach or the permanent income hypothesis is likely to generate higher growth and a more sustainable fiscal framework compared to the status quo.

Keywords: Resource/Energy Economics and Policy; Agricultural and Food Policy (search for similar items in EconPapers)
Pages: 24
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:332467

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