Aid and Oil in Papua New Guinea: Implications for the Financing of Service Delivery

Development Policy Centre Discussion Paper No. 4

32 Pages Posted: 29 Jun 2011 Last revised: 8 Sep 2013

Aaron Batten

Asian Development Bank - Economic Research

Date Written: June 1, 2011

Abstract

This paper measures the extent to which both donor finance and resource revenues have contributed to higher rates of expenditure in key development sectors of the PNG economy-social services (including health and education) and infrastructure, between 1975 and 2010. Estimated elasticities are then compared against a hypothetical revenue scenario to assess the potential contribution that post-2014 LNG revenue inflows may have on increasing the financing available to these sectors.

Keywords: Papua New Guinea, resource revenues, service financing

JEL Classification: E62, H50, H51, H52, H53, O23

Suggested Citation

Batten, Aaron, Aid and Oil in Papua New Guinea: Implications for the Financing of Service Delivery (June 1, 2011). Development Policy Centre Discussion Paper No. 4. Available at SSRN: https://ssrn.com/abstract=1874504 or http://dx.doi.org/10.2139/ssrn.1874504

Aaron Batten (Contact Author)

Asian Development Bank - Economic Research ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

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