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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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  • 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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