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The Risks of Fiscal Policy in Countries Rich in Natural Resource

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  • Alexander Knobel

    (Gaidar Institute for Economic Policy)

Abstract

The article addresses the issue of fiscal policy risks in countries with an abundance of natural resources, including Russia. It is demonstrated which consequences Russia’s federal budget may be faced with as a result of declining oil prices. In the context of phenomena typical of resource-dependent economies, it is shown that they have a tendency toward a lower rate of long-term economic growth. The macroeconomic and institutional aspects of the resource curse and the role of sovereign funds in shaping up the budget policy are discussed, with a special emphasis being made on their institutional importance.

Suggested Citation

  • Alexander Knobel, 2014. "The Risks of Fiscal Policy in Countries Rich in Natural Resource," Working Papers 0094, Gaidar Institute for Economic Policy, revised 2014.
    • Handle: RePEc:gai:wpaper:0094
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    Cited by:

    1. Georgy Idrisov & Sergey Sinelnikov-Murylev, 2014. "Forming Sources for a Long-run Growth: How to Understand Them?," Working Papers 0096, Gaidar Institute for Economic Policy, revised 2014.
    2. Michael Evgenievich Kosov & Ravil Gabdullaevich Akhmadeev & Vladimir Mikhailovich Smirnov & Sergey Yuryevich Popkov & Inna Nikolaevna Rycova, 2017. "Hydrocarbon Market in Countries with Developing Economy: Development Scenario," International Journal of Energy Economics and Policy, Econjournals, vol. 7(6), pages 128-135.

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    More about this item

    Keywords

    resource curse; budget policy; institutions; economic growth; sovereign funds.;
    All these keywords.

    JEL classification:

    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

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