Oil, Growth and Political Development in Angola
Angola is more dependent on oil than any other country in Sub Saharan Africa and most other countries as well, apart from a handful of OPEC members. Contributing half or more of GDP, oil revenues condition and distort every other macroeconomic variable in the country, a situation that has existed for decades. Appreciation of the real exchange rate is the main macroeconomic distortion resulting from these inflows of mineral income. The paper demonstrates a marked tendency for the Angolan Kwanza to appreciate in recent years, and continuation of this trend is one of the biggest threats to economic rehabilitation of Angola’s war-torn non-oil economy. Resulting economic distortions are quantified using an index of distortion based on Chenery-Syrquin “standard” growth paths of economic structure. Optimal savings and expenditure rates out of mineral income are calculated based on a permanent income approach to optimal expenditure over time. Finally, implications of oil revenue for the future political development of Angola’s main parties are discussed.
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- Xavier Sala-i-Martin & Arvind Subramanian, 2013.
"Addressing the Natural Resource Curse: An Illustration from Nigeria,"
Journal of African Economies,
Centre for the Study of African Economies (CSAE), vol. 22(4), pages 570-615, August.
- Xavier Sala-i-Martin & Arvind Subramanian, 2003. "Addressing the natural resource curse: An illustration from Nigeria," Discussion Papers 0203-15, Columbia University, Department of Economics.
- Xavier Sala-i-Martin & Arvind Subramanian, 2003. "Addressing the Natural Resource Curse: An Illustration from Nigeria," NBER Working Papers 9804, National Bureau of Economic Research, Inc.
- Arvind Subramanian & Xavier Sala-i-Martin, 2003. "Addressing the Natural Resource Curse; An Illustration From Nigeria," IMF Working Papers 03/139, International Monetary Fund.
- Xavier Sala-i-Martín & Arvind Subramanian, 2003. "Addressing the natural resource curse: An illustration from Nigeria," Economics Working Papers 685, Department of Economics and Business, Universitat Pompeu Fabra.
- World Bank, 2003. "Iran - Medium Term Framework for Transition : Converting Oil Wealth to Development," World Bank Other Operational Studies 14762, The World Bank.
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