Government Spending Multipliers in Natural Resource-Rich Developing Countries
Jean-Pascal Nganou (),
Juste Some () and
Guy Tchuente ()
Studies in Economics from School of Economics, University of Kent
This paper estimates government spending multiplier for natural resource-rich low-income countries (LICs). Our estimates suggest an absence of natural resource curse in government spending multiplier. In the short-run, the government spending multiplier is around 0.7 for natural resource-rich LICs and 0.43 for all LICs. The government spending has a permanent impact on the real economic activity in resource-rich countries while having a transitory long-run impact in other countries.
Keywords: Government spending multipliers; fiscal policy; natural resources (search for similar items in EconPapers)
JEL-codes: E62 O23 (search for similar items in EconPapers)
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