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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

Abstract: 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)
Date: 2016-09
New Economics Papers: this item is included in nep-env and nep-mac
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