1.

Record Nr.

UNINA9910811577103321

Autore

Berg Andrew

Titolo

Public Investment in Resource-Abundant Developing Countries / / Andrew Berg, Rafael Portillo, Susan Yang, Luis-Felipe Zanna

Pubbl/distr/stampa

Washington, D.C. : , : International Monetary Fund, , 2012

ISBN

1-4755-6996-3

1-4755-4982-2

1-283-94789-7

Edizione

[1st ed.]

Descrizione fisica

1 online resource (49 p.)

Collana

IMF Working Papers

IMF working paper ; ; WP/12/274

Altri autori (Persone)

PortilloRafael

YangSusan

ZannaLuis-Felipe

Disciplina

332.1;332.152

Soggetti

Public investments - Developing countries - Finance - Econometric models

Natural resources - Developing countries

Macroeconomics

Public Finance

Taxation

Exhaustible Resources and Economic Development

Investment

Capital

Intangible Capital

Capacity

Economic Growth of Open Economies

One, Two, and Multisector Growth Models

National Government Expenditures and Related Policies: Infrastructures

Other Public Investment and Capital Stock

Macroeconomics: Consumption

Saving

Wealth

Business Taxes and Subsidies

National Government Expenditures and Related Policies: General

Public finance & taxation

Public investment spending

Consumption taxes

Consumption

Private consumption



Expenditure

Taxes

National accounts

Public investments

Economics

Spendings tax

Expenditures, Public

Angola

Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Monografia

Note generali

"November 2012"  -- verso of t.p.

At head of title: Research Department -- verso of t.p.

Nota di bibliografia

Includes bibliographical references (p. 42-47).

Nota di contenuto

Cover; Contents; I. Introduction; II. Model Setup; A Households; B Firms; C The Government; D Some Market Clearing Conditions and Identities; III. Equilibrium and Calibration; A The CEMAC Region; B Angola; IV. Investing with a short revenue horizon; A Saving in a SWF vs. Investing in Public Capital; B Sustaining Public Capital; C Endogenous Depreciation of Public Capital; D The Sustainable Investing Approach; E Development without the Windfall; V. Investing Volatile Resource Revenue; A The Sustainable Investing Approach to Managing Volatility

B Allocation between Investing and External SavingVI. Conclusion; Tables; 1 Baseline Parameter Calibration; 2 Welfare Comparison with All-Investing; 3 Stabilization Effects of the Sustainable Investing Approach; Figures; 1 CEMAC application: saving in a SWF vs. all-investing; 2 CEMAC application: all-investing and sustaining public capital by fiscal Adjustments through consumption taxes or transfers; 3 CEMAC application with constant depreciation rate of public capital: Saving in a SWF vs. all-investing; 4 CEMAC application: sustainable investing approach

5 CEMAC application: investing without a Resource Windfall 6 Angola application: conservative vs. aggressive scaling-up under sustainable investing; 7 Angola application: conservative vs. aggressive scaling-up With constant depreciation rate; Appendix I: Equilibrium and Optimality Conditions; References

Sommario/riassunto

Natural resource revenues provide a valuable source to finance public investment in developing countries, which frequently face borrowing constraints and tax revenue mobilization problems. This paper develops a dynamic stochastic small open economy model to analyze the macroeconomic effects of investing natural resource revenues, making explicit the role of pervasive features in these countries including public investment inefficiency, absorptive capacity constraints, Dutch disease, and financing needs to sustain capital. Revenue exhaustibility raises medium-term issues of how to sustain capital built during a windfall, while revenue volatility raises short-term concerns about macroeconomic instability. Using the model, country applications show how combining public investment with a resource fund---a sustainable investing approach---can help address the macroeconomic problems associated with both exhaustibility and volatility. The applications also demonstrate how the model can be used to determine the appropriate magnitude of the investment



scaling-up (accounting for the financing needs to sustain capital) and the adequate size of a stabilization fund (buffer).