Managing future oil revenues in Ghana: An assessment of alternative allocation options
Abstract: Contemporary policy debates on the macroeconomics of resource booms often concentrate on the short‐run Dutch disease effects of public expenditure, ignoring the possible long‐term effects of alternative revenue‐allocation options and the supply‐side impact of royalty‐financed public inves...
| Main Authors: | , , , |
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| Format: | Journal Article |
| Language: | Inglés |
| Published: |
Wiley
2010
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/154663 |
| _version_ | 1855514957089603584 |
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| author | Breisinger, Clemens Diao, Xinshen Schweickert, Rainer Wiebelt, Manfred |
| author_browse | Breisinger, Clemens Diao, Xinshen Schweickert, Rainer Wiebelt, Manfred |
| author_facet | Breisinger, Clemens Diao, Xinshen Schweickert, Rainer Wiebelt, Manfred |
| author_sort | Breisinger, Clemens |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Abstract: Contemporary policy debates on the macroeconomics of resource booms often concentrate on the short‐run Dutch disease effects of public expenditure, ignoring the possible long‐term effects of alternative revenue‐allocation options and the supply‐side impact of royalty‐financed public investments. In a simple model applied here, the government decides the level and timing of resource‐rent spending. This model also considers productivity spillovers over time, which may exhibit a sector bias toward domestic production or exports. A dynamic computable general equilibrium (DCGE) model is used to simulate the effect of temporary oil revenue inflows to Ghana. The simulations show that beyond the short‐run Dutch disease effects, the relationship between windfall profits, growth, and households’ welfare is less straightforward than what the simple model of the ‘resource curse’ suggests. The DCGE model results suggest that designing a rule that allocates oil revenues to both productivity‐enhancing investments and an oil fund is crucial to achieving shared growth and macroeconomic stability. |
| format | Journal Article |
| id | CGSpace154663 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2010 |
| publishDateRange | 2010 |
| publishDateSort | 2010 |
| publisher | Wiley |
| publisherStr | Wiley |
| record_format | dspace |
| spelling | CGSpace1546632025-02-24T06:46:54Z Managing future oil revenues in Ghana: An assessment of alternative allocation options Breisinger, Clemens Diao, Xinshen Schweickert, Rainer Wiebelt, Manfred macroeconomics public expenditure investment growth computable general equilibrium models development policies Abstract: Contemporary policy debates on the macroeconomics of resource booms often concentrate on the short‐run Dutch disease effects of public expenditure, ignoring the possible long‐term effects of alternative revenue‐allocation options and the supply‐side impact of royalty‐financed public investments. In a simple model applied here, the government decides the level and timing of resource‐rent spending. This model also considers productivity spillovers over time, which may exhibit a sector bias toward domestic production or exports. A dynamic computable general equilibrium (DCGE) model is used to simulate the effect of temporary oil revenue inflows to Ghana. The simulations show that beyond the short‐run Dutch disease effects, the relationship between windfall profits, growth, and households’ welfare is less straightforward than what the simple model of the ‘resource curse’ suggests. The DCGE model results suggest that designing a rule that allocates oil revenues to both productivity‐enhancing investments and an oil fund is crucial to achieving shared growth and macroeconomic stability. 2010-06 2024-10-01T14:03:00Z 2024-10-01T14:03:00Z Journal Article https://hdl.handle.net/10568/154663 en https://hdl.handle.net/10568/161922 Limited Access Wiley Breisinger, Clemens; Diao, Xinshen; Schweickert, Rainer; Wiebelt, Manfred. 2010. Managing future oil revenues in Ghana: An assessment of alternative allocation options. African Development Review 22(2): 303-315. https://doi.org/10.1111/j.1467-8268.2010.00239.x |
| spellingShingle | macroeconomics public expenditure investment growth computable general equilibrium models development policies Breisinger, Clemens Diao, Xinshen Schweickert, Rainer Wiebelt, Manfred Managing future oil revenues in Ghana: An assessment of alternative allocation options |
| title | Managing future oil revenues in Ghana: An assessment of alternative allocation options |
| title_full | Managing future oil revenues in Ghana: An assessment of alternative allocation options |
| title_fullStr | Managing future oil revenues in Ghana: An assessment of alternative allocation options |
| title_full_unstemmed | Managing future oil revenues in Ghana: An assessment of alternative allocation options |
| title_short | Managing future oil revenues in Ghana: An assessment of alternative allocation options |
| title_sort | managing future oil revenues in ghana an assessment of alternative allocation options |
| topic | macroeconomics public expenditure investment growth computable general equilibrium models development policies |
| url | https://hdl.handle.net/10568/154663 |
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