IDEAS home Printed from https://ideas.repec.org/p/oxf/oxcrwp/012.html
   My bibliography  Save this paper

Managing Resource Revenues: Lessons for low income countries

Author

Listed:
  • Paul Collier
  • Anthony J Venables

Abstract

This paper explores the choices faced by developing country governments that have received substantial revenues from natural resources. The economic principles underlying the choices between consumption, domestic investment, and the accumulation of foreign assets are analysed. The priority should be to use revenues to promote growth and investment in the domestic economy and thereby put consumption on a rapid growth path, although absorptive capacity may constrain the scope for doing this in the short run. Foreign asset accumulation should be used primarily to smooth volatility, rather than to build up a long-term sovereign wealth fund. Trade-offs between private and public spending channels are examined from both an economic and political economy standpoint.

Suggested Citation

  • Paul Collier & Anthony J Venables, 2008. "Managing Resource Revenues: Lessons for low income countries," OxCarre Working Papers 012, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
  • Handle: RePEc:oxf:oxcrwp:012
    as

    Download full text from publisher

    File URL: http://www.oxcarre.ox.ac.uk/images/stories/papers/ResearchPapers/oxcarrerp200812.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Brahmbhatt, Milan & Canuto, Otaviano, 2010. "Natural Resources and Development Strategy after the Crisis," World Bank - Economic Premise, The World Bank, issue 1, pages 1-7, February.
    2. Jurgita Baranauskiene & Valdemaras Makutenas & Albina Novosinskiene, 2014. "What Are Left Underestimated Using Cost-Benefit Analysis For Public Project Evaluation?," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 8(1), pages 856-867.
    3. Christian von Haldenwang & Maksym Ivanyna, 2017. "Does the political resource curse affect public finance? The vulnerability of tax revenue in resource-rich countries," WIDER Working Paper Series 007, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    Exploitation; natural assets; natural resources; principal-agent framework; ownership rights; taxation; discovery process; extraction; renewability; signature bonuses; negotiated deals; auctions; absorptive capacity; foreign asset accumulation; volatility; sovereign wealth fund.;

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oxf:oxcrwp:012. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Antonella Surdi). General contact details of provider: http://edirc.repec.org/data/oxcaruk.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.