| Description |
1 online resource (48 pages) : color illustrations. |
| Physical Medium |
polychrome |
| Description |
text file |
| Series |
IMF working paper ; WP/12/274
|
|
IMF working paper ; WP/12/274.
|
| Note |
Title from PDF title page (IMF Web site, viewed Nov. 26, 2012). |
|
"Research Department"--Page 2 of pdf. |
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"November 2012"--Page 2 of pdf. |
| Summary |
"Natural resource revenues provide a valuable source to finance public investment in developing countries, which frequently face borrowing constraints and tax revenue mobilization problems. This paper develops a dynamic stochastic small open economy model to analyze the macroeconomic effects of investing natural resource revenues, making explicit the role of pervasive features in these countries including public investment inefficiency, absorptive capacity constraints, Dutch disease, and financing needs to sustain capital. Revenue exhaustibility raises medium-term issues of how to sustain capital built during a windfall, while revenue volatility raises short-term concerns about macroeconomic instability. Using the model, country applications show how combining public investment with a resource fund---a sustainable investing approach---can help address the macroeconomic problems associated with both exhaustibility and volatility. The applications also demonstrate how the model can be used to determine the appropriate magnitude of the investment scaling-up (accounting for the financing needs to sustain capital) and the adequate size of a stabilization fund (buffer)"--Abstract. |
| Bibliography |
Includes bibliographical references (pages 42-47). |
| Local Note |
eBooks on EBSCOhost EBSCO eBook Subscription Academic Collection - North America |
| Subject |
Public investments -- Developing countries -- Finance -- Econometric models.
|
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Public investments. |
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Developing countries. |
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Finance. |
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Econometric models. |
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Natural resources -- Developing countries.
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Natural resources. |
| Genre/Form |
Electronic books.
|
| Added Author |
Berg, Andrew.
|
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International Monetary Fund. Research Department.
|
| ISBN |
9781475549829 (electronic book) |
|
1475549822 (electronic book) |
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