EconPapers    
Economics at your fingertips  
 

Resource booms, inequality, and poverty: The case of gas in Bolivia

Jann Lay, Rainer Thiele and Manfred Wiebelt ()

No 1287, Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: This paper addresses the question of whether the Bolivian gas boom of the 1990s has bypassed large parts of the poor population, thereby leading to increasing inequalities in an already unequal society. Using a Computable General Equilibrium model that is sequentially linked to a microsimulation model, we examine the transmission channels through which the large resource inflows related to the gas boom, both initial foreign investment in the sector and the subsequent export earnings, as well as large public transfer programs affect the distribution of income. These transfers may well be interpreted as a means of redistributing resource rents. Our focus is on labour market impacts, in particular on shifts between formal and informal employment and changes in relative factor prices. Our simulation results suggest that the gas boom induces a combination of unequalising and equalising forces, which tend to offset each other. As net distributional change is limited, growth generated by the boom reduces poverty despite increasing informality.

Keywords: Distribution; Computable General Equilibrium Model; Microsimulation; Natural Gas; Bolivia; Poverty (search for similar items in EconPapers)
JEL-codes: D3 D58 O17 O54 Q33 (search for similar items in EconPapers)
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/3858/1/kap1287.pdf (application/pdf)

Related works:
Journal Article: RESOURCE BOOMS, INEQUALITY, AND POVERTY: THE CASE OF GAS IN BOLIVIA (2008) Downloads
Working Paper: Resource Booms, Inequality, and Poverty: The Case of Gas in Bolivia (2007) 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:zbw:ifwkwp:1287

Access Statistics for this paper

More papers in Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().

 
Page updated 2024-03-31
Handle: RePEc:zbw:ifwkwp:1287