EconPapers    
Economics at your fingertips  
 

Follow the money: Does the financial sector intermediate natural resource windfalls?

Thorsten Beck () and Steven Poelhekke

No 11872, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: The need to absorb windfalls gains and manage them appropriately has been discussed extensively by academics and policy makers alike. We explore the role of the financial sector in intermediating these windfalls.. Controlling for the level of financial development, inflation, GDP growth and country fixed-effects, we find a relative decline in financial sector deposits in countries that experience an unexpected natural resource windfall as measured by shocks to exogenous world prices. Moreover, we find a similar relative decline in lending, which is mostly due to the decrease in deposits. The smaller role for the financial sector in intermediating resource booms is accompanied by a stronger role of governments in channeling resources into the economy, mostly through higher government consumption.

Keywords: Banking; Financial Development; Natural resources (search for similar items in EconPapers)
JEL-codes: E20 F41 G20 O10 Q32 Q33 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac
Date: 2017-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=11872 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: Follow the Money: Does the Financial Sector Intermediate Natural Resource Windfalls? (2017) Downloads
Working Paper: Follow the money: Does the financial sector intermediate natural resource windfalls? (2017) Downloads
Working Paper: Follow the money: Does the financial sector intermediate natural resources windfalls? (2017) Downloads
Working Paper: Follow the money: Does the Financial Sector Intermediate Natural Resource Windfalls? (2017) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:11872

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... rs/dp.php?dpno=11872

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2019-08-26
Handle: RePEc:cpr:ceprdp:11872