Poverty Impacts of Government Expenditure from Natural Resource Revenues
This study analyzes the effects on poverty incidence and other economic variables resulting from government expenditures associated with natural resource revenues, using the Nam Theun II hydroelectric power project in the Lao People’s Democratic Republic (Lao PDR) as a case study. The analysis uses a multi-sector/multi-household general equilibrium model of the economy of Lao PDR. The conceptual framework distinguishes between official and marginal expenditures financed by project revenues, recognizing that some of the former still might have been undertaken without the new revenues generated by the project. A range of assumptions is considered regarding the direct distributional impact of the marginal expenditures. The analysis also incorporates the project’s indirect distributional effects, operating through the "Dutch disease" mechanism. We find that poverty incidence declines under the entire range of distributional assumptions considered. Nevertheless, the most important determinant of poverty impact is the degree of rural bias. Even the most regressive of the pro-rural distributions reduces poverty incidence by seven times as much as the most progressive of the pro-urban distributions.
|Date of creation:||01 Jun 2010|
|Date of revision:|
|Contact details of provider:|| Postal: P.O. Box 789, Manila|
Fax: (63-2) 636-2648
Web page: http://www.adb.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cassing, James H. & Warr, Peter G., 1985. "The distributional impact of a resource boom," Journal of International Economics, Elsevier, vol. 18(3-4), pages 301-319, May.
- R.G. Gregory, 1976.
"Some Implications Of The Growth Of The Mineral Sector,"
Australian Journal of Agricultural and Resource Economics,
Australian Agricultural and Resource Economics Society, vol. 20(2), pages 71-91, 08.
- Gregory, R.G., 1976. "Some Implications Of The Growth Of The Mineral Sector," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 20(02), August.
- W. E. G. Salter, 1959. "Internal And External Balance: The Role Op Price And Expenditure Effects," The Economic Record, The Economic Society of Australia, vol. 35(71), pages 226-238, 08.
- Corden, W Max & Neary, J Peter, 1982. "Booming Sector and De-Industrialisation in a Small Open Economy," Economic Journal, Royal Economic Society, vol. 92(368), pages 825-48, December.
When requesting a correction, please mention this item's handle: RePEc:ris:adbrei:0051. 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: (Ivan B. de Leon)
If references are entirely missing, you can add them using this form.