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Poverty impacts of natural resource revenues


  • Warr, Peter
  • Menon, Jayant
  • Yusuf, Arief Anshory


This study analyzes the effects on poverty incidence and other variables resulting from government expenditures associated with natural resource revenues, using Laos as a case study. The analysis uses a multi-sector/multi-household general equilibrium model of the Lao economy. The conceptual framework emphasizes the distinction between official and marginal expenditures financed by project revenues. A range of assumptions is considered regarding the direct distributional impact of the true marginal expenditures and their implications are compared. Poverty incidence declines under the entire range of distributional assumptions, but the most important determinant of these impacts is the degree of pro-rural bias.

Suggested Citation

  • Warr, Peter & Menon, Jayant & Yusuf, Arief Anshory, 2012. "Poverty impacts of natural resource revenues," Journal of Asian Economics, Elsevier, vol. 23(4), pages 442-453.
  • Handle: RePEc:eee:asieco:v:23:y:2012:i:4:p:442-453
    DOI: 10.1016/j.asieco.2012.03.003

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    References listed on IDEAS

    1. World Bank, 2008. "Lao PDR Economic Monitor, April 2008," World Bank Other Operational Studies 13815, The World Bank.
    2. World Bank, 2008. "Lao PDR Economic Monitor : November 2008," World Bank Other Operational Studies 13811, The World Bank.
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    Cited by:

    1. Arief Anshory Yusuf & Ahmad Komarulzaman & Muhamad Purnagunawan & Budy P. Resosudarmo, 2013. "Growth, Poverty and Labor Market Rigidity in Indonesia: A General Equilibrium Investigation," Working Papers in Economics and Development Studies (WoPEDS) 201304, Department of Economics, Padjadjaran University, revised Jan 2013.
    2. Arief Anshory Yusuf, 2014. "Poverty, food prices and supply shocks of agricultural products in Indonesia," Working Papers in Economics and Development Studies (WoPEDS) 201408, Department of Economics, Padjadjaran University, revised Jun 2014.
    3. Phouphet Kyophilavong, 2013. "Comment on “Lao Economy: Capitalizing on Natural Resource Exports”," Asian Economic Policy Review, Japan Center for Economic Research, vol. 8(1), pages 90-91, June.

    More about this item


    Asia; Lao PDR; Poverty incidence; General equilibrium; Natural resource revenues;

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water


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