Managing future oil revenues in Ghana: An assessment of alternative allocation options
Abstract"Contemporary policy debates on the macroeconomics of resource booms often concentrate on the short-run Dutch disease effects of public expenditure, ignoring the possible long-term effects of alternative revenue-allocation options and the supply-side impact of royalty-financed public investments. In a simple model applied here, the government decides the level and timing of resource-rent spending. This model also considers productivity spillovers over time, which may exhibit a sector bias toward domestic production or exports. A dynamic computable general equilibrium (DCGE) model is used to simulate the effect of temporary oil revenue inflows to Ghana. The simulations show that beyond the short-run Dutch disease effects, the relationship between windfall profits, growth, and households' welfare is less straightforward than what the simple model of the “resource curse” suggests. The DCGE model results suggest that designing a rule that allocates oil revenues to both productivity-enhancing investments and an oil fund is crucial to achieving shared growth and macroeconomic stability." from authors' abstract
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by International Food Policy Research Institute (IFPRI) in its series IFPRI discussion papers with number 893.
Date of creation: 2009
Date of revision:
Oil fund; Public expenditures; Growth; Computable general equilibrium (CGE) analysis; Development strategies;
Other versions of this item:
- Clemens Breisinger & Diao Xinshen & Rainer Schweickert & Manfred Wiebelt, 2010. "Managing Future Oil Revenues in Ghana: An Assessment of Alternative Allocation Options," African Development Review, African Development Bank, vol. 22(2), pages 303-315.
- Clemens Breisinger & Xinshen Diao & Rainer Schweickert & Manfred Wiebelt, 2009. "Managing Future Oil Revenues in Ghana - An Assessment of Alternative Allocation Options," Kiel Working Papers 1518, Kiel Institute for the World Economy.
- H4 - Public Economics - - Publicly Provided Goods
- O5 - Economic Development, Technological Change, and Growth - - Economywide Country Studies
This paper has been announced in the following NEP Reports:
- NEP-AFR-2009-09-26 (Africa)
- NEP-ALL-2009-09-26 (All new papers)
- NEP-CMP-2009-09-26 (Computational Economics)
- NEP-ENE-2009-09-26 (Energy Economics)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Kolavalli, Shashi & Robinson, Elizabeth J. Z. & Diao, Xinshen & Alpuerto, Vida & Folledo, Renato & Slavova, Mira & Ngeleza, Guyslain K. & Asante, Felix Ankomah, 2012. "Economic transformation in Ghana: Where will the path lead?," IFPRI discussion papers 1161, International Food Policy Research Institute (IFPRI).
- Manfred Wiebelt & Rainer Schweickert & Clemens Breisinger & Marcus Böhme, 2011.
"Oil revenues for public investment in Africa: targeting urban or rural areas?,"
Review of World Economics (Weltwirtschaftliches Archiv),
Springer, vol. 147(4), pages 745-770, November.
- Marcus Böhme & Clemens Breisinger & Rainer Schweickert & Manfred Wiebelt, 2010. "Oil revenues for public investment in Africa: targeting urban or rural areas?," Kiel Working Papers 1623, Kiel Institute for the World Economy.
- Manfred Wiebelt & Karl Pauw & John Mary Matovu & Evarist Twimukye & Todd Benson, 2011.
"Managing Future Oil Revenues in Uganda for Agricultural Development and Poverty Reduction: A CGE Analysis of Challenges and Options,"
Kiel Working Papers
1696, Kiel Institute for the World Economy.
- Wiebelt, Manfred & Pauw, Karl & Matovu, John Mary & Twimukye, Evarist & Benson, Todd, 2011. "Managing future oil revenue in Uganda for agricultural development and poverty reduction: A CGE analysis of challenges and options," IFPRI discussion papers 1122, International Food Policy Research Institute (IFPRI).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.