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Government Spending Multipliers in Natural Resource-Rich Developing Countries

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  • Jean-Pascal Nganou
  • Juste Some
  • Guy Tchuente

Abstract

This paper estimates government spending multiplier for natural resource-rich low-income countries (LICs). Our estimates suggest an absence of natural resource curse in government spending multiplier. In the short-run, the government spending multiplier is around 0.7 for natural resource-rich LICs and 0.43 for all LICs. The government spending has a permanent impact on the real economic activity in resource-rich countries while having a transitory long-run impact in other countries.

Suggested Citation

  • Jean-Pascal Nganou & Juste Some & Guy Tchuente, 2016. "Government Spending Multipliers in Natural Resource-Rich Developing Countries," Studies in Economics 1609, School of Economics, University of Kent.
    • Handle: RePEc:ukc:ukcedp:1609
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    References listed on IDEAS

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    More about this item

    Keywords

    Government spending multipliers; fiscal policy; natural resources;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development

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