Managing resource revenues in developing
This paper addresses the efficient management of natural resource revenues in capitalscarce developing economies. We depart from usual prescriptions based on the permanent income hypothesis and argue that capital-scarce countries should prioritise domestic investment. Since revenue streams are highl...
| Main Authors: | , , , |
|---|---|
| Format: | Working paper |
| Published: |
University of Oxford
2009
|
| _version_ | 1797090260436385792 |
|---|---|
| author | Collier, P Venables, A Van der Ploeg, R Spence, M |
| author_facet | Collier, P Venables, A Van der Ploeg, R Spence, M |
| author_sort | Collier, P |
| collection | OXFORD |
| description | This paper addresses the efficient management of natural resource revenues in capitalscarce developing economies. We depart from usual prescriptions based on the permanent income hypothesis and argue that capital-scarce countries should prioritise domestic investment. Since revenue streams are highly volatile governments should protect consumption from shocks by increasing it only cautiously. Volatility in domestic investment can be moderated by a buffer of international liquidity, but it is also important to structure investment processes to be able to cope efficiently with substantial fluctuations. To date, most of the resource-rich countries of Africa have not had investment rates commensurate with their rate of resource extraction. |
| first_indexed | 2024-03-07T03:15:58Z |
| format | Working paper |
| id | oxford-uuid:b5c6d8f7-b919-4c22-b38e-a753fe2362af |
| institution | University of Oxford |
| last_indexed | 2024-03-07T03:15:58Z |
| publishDate | 2009 |
| publisher | University of Oxford |
| record_format | dspace |
| spelling | oxford-uuid:b5c6d8f7-b919-4c22-b38e-a753fe2362af2022-03-27T04:36:11ZManaging resource revenues in developingWorking paperhttp://purl.org/coar/resource_type/c_8042uuid:b5c6d8f7-b919-4c22-b38e-a753fe2362afSymplectic ElementsBulk import via SwordUniversity of Oxford2009Collier, PVenables, AVan der Ploeg, RSpence, MThis paper addresses the efficient management of natural resource revenues in capitalscarce developing economies. We depart from usual prescriptions based on the permanent income hypothesis and argue that capital-scarce countries should prioritise domestic investment. Since revenue streams are highly volatile governments should protect consumption from shocks by increasing it only cautiously. Volatility in domestic investment can be moderated by a buffer of international liquidity, but it is also important to structure investment processes to be able to cope efficiently with substantial fluctuations. To date, most of the resource-rich countries of Africa have not had investment rates commensurate with their rate of resource extraction. |
| spellingShingle | Collier, P Venables, A Van der Ploeg, R Spence, M Managing resource revenues in developing |
| title | Managing resource revenues in developing |
| title_full | Managing resource revenues in developing |
| title_fullStr | Managing resource revenues in developing |
| title_full_unstemmed | Managing resource revenues in developing |
| title_short | Managing resource revenues in developing |
| title_sort | managing resource revenues in developing |
| work_keys_str_mv | AT collierp managingresourcerevenuesindeveloping AT venablesa managingresourcerevenuesindeveloping AT vanderploegr managingresourcerevenuesindeveloping AT spencem managingresourcerevenuesindeveloping |