School of Economics

2016 Discussion papers


School of Economics Discussion Paper 16/09


Government Spending Multipliers in Natural
Resource-Rich Developing Countries


Jean-Pascal Nganou, Juste Somé and Guy Tchuente
World Bank, Independent Consultant and University of Kent


September 2016

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.

JEL Classification:
E62; O23

Keywords: Government spending multipliers; fiscal policy; natural resources


To download the file in pdf format click here.

 

School of Economics, Keynes College, University of Kent, Canterbury, Kent, CT2 7NP

Undergraduate enquiries: +44 (0) 1227 827497, Postgraduate enquiries: +44 (0) 1227 827440 or email us

Last Updated: 30/03/2017