Government Spending Multipliers in Resource-Rich Developing Countries

33 Pages Posted: 28 Nov 2016 Last revised: 13 Apr 2017

See all articles by Jean-Pascal N. Nganou

Jean-Pascal N. Nganou

World Bank

Juste Somé

Université Ouaga II; Université Ouaga II

Guy Tchuente

University of Kent

Date Written: October 1, 2016

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.

Keywords: government spending multipliers, fiscal policy, natural resources

JEL Classification: E62, O23

Suggested Citation

Nganou, Jean-Pascal N. and Somé, Juste and Tchuente, Guy, Government Spending Multipliers in Resource-Rich Developing Countries (October 1, 2016). Available at SSRN: https://ssrn.com/abstract=2875757 or http://dx.doi.org/10.2139/ssrn.2875757

Jean-Pascal N. Nganou

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Juste Somé

Université Ouaga II ( email )

12 BP 417
Ouagadougou, Kadiogo
Burkina Faso
+226 25 36 99 60 (Phone)

HOME PAGE: http://www.univ-ouaga2.bf/

Université Ouaga II ( email )

12 BP 417
Ouagadougou, Kadiogo
Burkina Faso
+226 25 36 99 60 (Phone)

HOME PAGE: http://www.univ-ouaga2.bf/

Guy Tchuente (Contact Author)

University of Kent ( email )

Keynes College, University of Kent
Canterbury, Kent CT2 7NP
United Kingdom

HOME PAGE: http://https://www.kent.ac.uk/economics/staff/profiles/guy-tchuente.html

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
71
Abstract Views
662
Rank
613,538
PlumX Metrics