06002oam 22013094 450 991081762910332120200520144314.01-4623-8907-41-4527-0567-497866128432731-4518-7259-31-282-84327-3(CKB)3170000000055270(EBL)1608303(SSID)ssj0000940042(PQKBManifestationID)11483766(PQKBTitleCode)TC0000940042(PQKBWorkID)10946570(PQKB)10050560(OCoLC)649718522(IMF)WPIEE2009112(MiAaPQ)EBC1608303(IMF)WPIEA2009112(EXLCZ)99317000000005527020020129d2009 uf 0engurcn|||||||||txtccrAn Alternative Explanation for the Resource Curse : The Income Effect Channel /Ali Alichi, Rabah Arezki1st ed.Washington, D.C. :International Monetary Fund,2009.1 online resource (26 p.)IMF Working PapersDescription based upon print version of record.1-4519-1689-2 Includes bibliographical references.Contents; I. Introduction; Tables; 1. Composition of Government Expenditures in Oil Exporting; II. A Simple Model; A. Closed Economy; Figures; 1. Non-Hydrocarbon GDP Growth and Government Current Spending; 2. Transition Paths; B. Openness and Resource Curse; C. Altruism and Resource Curse; III. Empirical Investigation; A. Empirical Methodology; 3. Resource Curse Channels; B. Results; 2. Growth Regressions; IV. Conclusion; 3. Growth Regressions using Restrictions on Trade and Capital Flows; References; Appendices; A. Data; Appendix Tables; 4. Data Description; 5. Descriptive Statistics6. List of Countries Included in the Sample B. Testing for Whether a Higher Degree of Altruism Dampens the Adverse Effect of Government Current Spending on Non-Hydrocarbon GDP Growth; 7. Growth Regressions using Regional Dummies; C. Regional integration of two large open economiesThe paper provides an alternative explanation for the "resource curse" based on the income effect resulting from high government current spending in resource rich economies. Using a simple life cycle framework, we show that private investment in the non-resource sector is adversely affected if private agents expect extra government current spending financed through resource sector revenues in the future. This income channel of the resource curse is stronger for countries with lower degrees of openness and forward altruism. We empirically validate these findings by estimating non-hydrocarbon sector growth regressions using a panel of 25 oil-exporting countries over 1992-2005.IMF Working Papers; Working Paper ;No. 2009/112Resource curseEconomic developmentAggregate Factor Income DistributionimfAgricultural and Natural Resource EconomicsimfBalance of paymentsimfCapital flowsimfCapital movementsimfCurrent spendingimfData AccessimfEnvironmentimfEnvironmental and Ecological Economics: GeneralimfEnvironmental managementimfExpenditureimfExpenditures, PublicimfExports and ImportsimfIncomeimfInternational economicsimfInternational InvestmentimfLong-term Capital MovementsimfMacroeconomic Analyses of Economic DevelopmentimfMacroeconomicsimfMethodology for Collecting, Estimating, and Organizing Macroeconomic DataimfNational accountsimfNational Government Expenditures and Related Policies: GeneralimfNatural ResourcesimfNatural resourcesimfNonrenewable Resources and Conservation: GeneralimfOne, Two, and Multisector Growth ModelsimfPublic finance & taxationimfPublic FinanceimfNigeriaimfResource curse.Economic development.Aggregate Factor Income DistributionAgricultural and Natural Resource EconomicsBalance of paymentsCapital flowsCapital movementsCurrent spendingData AccessEnvironmentEnvironmental and Ecological Economics: GeneralEnvironmental managementExpenditureExpenditures, PublicExports and ImportsIncomeInternational economicsInternational InvestmentLong-term Capital MovementsMacroeconomic Analyses of Economic DevelopmentMacroeconomicsMethodology for Collecting, Estimating, and Organizing Macroeconomic DataNational accountsNational Government Expenditures and Related Policies: GeneralNatural ResourcesNatural resourcesNonrenewable Resources and Conservation: GeneralOne, Two, and Multisector Growth ModelsPublic finance & taxationPublic Finance332.1Alichi Ali1599382Arezki Rabah1595842International Monetary Fund.DcWaIMFBOOK9910817629103321An Alternative Explanation for the Resource Curse3922030UNINA