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Natural Resource Revenues and Public Investment in Resource-rich Economies in Sub-Saharan Africa

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  • Amin Karimu
  • George Adu
  • George Marbuah
  • Justice Tei Mensah
  • Franklin Amuakwa-Mensah

Abstract

The general policy prescription for resource-rich countries is that, for sustainable consumption, a greater percentage of the windfall from resource rents should be channelled into accumulating foreign assets such as a sovereign public fund as done in Norway and other developed but resource-rich countries. This might not be a correct policy prescription for resource-rich sub-Saharan African (SSA) countries, where public capital is very low to support the needed economic growth. In such countries, rents from resources serve as opportunity to scale-up the needed public capital.
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Suggested Citation

  • Amin Karimu & George Adu & George Marbuah & Justice Tei Mensah & Franklin Amuakwa-Mensah, 2017. "Natural Resource Revenues and Public Investment in Resource-rich Economies in Sub-Saharan Africa," Review of Development Economics, Wiley Blackwell, vol. 21(4), pages 107-130, November.
  • Handle: RePEc:bla:rdevec:v:21:y:2017:i:4:p:e107-e130
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    Cited by:

    1. Elwasila Saeed Elamin Mohamed, 2020. "Resource Rents, Human Development and Economic Growth in Sudan," Economies, MDPI, Open Access Journal, vol. 8(4), pages 1-1, November.
    2. Rian Hilmawan & Jeremy Clark, 2018. "Resource Dependence and the Causes of Local Economic Growth: An Empirical Investigation," Working Papers in Economics 18/12, University of Canterbury, Department of Economics and Finance.
    3. Arsham Reisinezhad, 2020. "Absorption capacity and Natural Resource Curse," PSE Working Papers halshs-03012661, HAL.
    4. Taner Turan & Halit Yanıkkaya, 2020. "Natural resource rents and capital accumulation nexus: do resource rents raise public human and physical capital expenditures?," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 22(3), pages 449-466, July.

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