EconPapers    
Economics at your fingertips  
 

Resource Windfalls, Macroeconomic Stability and Growth: The Role of Political Institutions

Rabah Arezki (), Kirk Hamilton and Kazim Kazimov

No 613, Working Papers from Economic Research Forum

Abstract: We use a new dataset on non-resource GDP to examine the performance of commodity-exporting countries in terms of macroeconomic stability and economic growth in a panel of up to 129 countries during the period 1970-2007. Our main findings are threefold. First, we find that overall government spending in commodity-exporting countries has been procyclical. Second, we find that resource windfalls initially crowd out non-resource GDP which then increases as a result of the fiscal expansion. Third, we find that in the long run resource windfalls have negative effects on non-resource sector GDP growth. Yet, the effects turn out to be statistically insignificant when controlling for government spending. Both the effects of resource windfalls on macroeconomic stability and economic growth are moderated by the quality of political institutions.

Date: 2011-01-08, Revised 2011-01-08
References: Add references at CitEc
Citations: View citations in EconPapers (10) Track citations by RSS feed

Published by The Economic Research Forum (ERF)

Downloads: (external link)
http://erf.org.eg/wp-content/uploads/2014/08/613.pdf (application/pdf)
http://bit.ly/2n9j7Iy (text/html)

Related works:
Working Paper: Resource windfalls, macroeconomic stability and growth: the role of political institutions (2012) Downloads
Working Paper: Resource Windfalls, Macroeconmic Stability and Growth: The Role of Political Institutions (2011) Downloads
Working Paper: Resource Windfalls, Macroeconomic Stability and Growth; The Role of Political Institutions (2011) 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:erg:wpaper:613

Access Statistics for this paper

More papers in Working Papers from Economic Research Forum Contact information at EDIRC.
Bibliographic data for series maintained by Sherine Ghoneim ().

 
Page updated 2019-07-18
Handle: RePEc:erg:wpaper:613