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Foreign Resource Inflows, Saving, and Growth

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  • Maurice Obstfeld.

Abstract

This paper surveys aspects of the empirical and theoretical debate over the effects of foreign resource inflows on the national saving, investment, and growth of developing countries. The paper suggests a methodology for systematically studying the effects of resource inflows, based on standard optimal growth models modified for consistency with key empirical macro relations. A fairly robust normative implication even of representative-agent optimal consumption models is that much if not most of extra permanent resources should be consumed rather than invested.

Suggested Citation

  • Maurice Obstfeld., 1998. "Foreign Resource Inflows, Saving, and Growth," Center for International and Development Economics Research (CIDER) Working Papers C98-099, University of California at Berkeley.
  • Handle: RePEc:ucb:calbcd:c98-099
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Feyzioglu, Tarhan & Swaroop, Vinaya & Min Zhu, 1996. "Foreign aid's impact on public spending," Policy Research Working Paper Series 1610, The World Bank.
    2. Sebastian Edwards, 1995. "Public sector deficits and macroeconomic stability in developing economies," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 307-373.
    3. Sebastian Edwards, 1995. "Why are Saving Rates so Different Across Countries?: An International Comparative Analysis," NBER Working Papers 5097, National Bureau of Economic Research, Inc.
    4. Yuan K. Chou & Hayat Khan, 2004. "Explaining Africa's Growth Tragedy: A Theoretical Model of Dictatorship and Kleptocracy," Department of Economics - Working Papers Series 922, The University of Melbourne.
    5. Kyriakos C. Neanidis & Dimitrios Varvarigos, 2007. "The Allocation of volatile aid and economic growth: Evidence and a suggestive theory," Discussion Paper Series 2007_07, Department of Economics, Loughborough University, revised Mar 2007.

    More about this item

    JEL classification:

    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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