Download or read book Resource Blessing Revenue Curse Domestic Revenue Effort in Resource Rich Countries written by Ernesto Crivelli and published by International Monetary Fund. This book was released on 2014-01-14 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper uses a newly constructed revenue dataset of 35 resource-rich countries for the period 1992-2009 to analyze the impact of expanding resource revenues on different types of domestic (non resource) tax revenues. Overall, we find a statistically significant negative relationship between resource revenues and total domestic (non resource) revenues, including for the major tax components. For each additional percentage point of GDP in resource revenues, there is a reduction in domestic (non resource) revenues of about 0.3 percentage points of GDP. We find this primarily occurs through reduced effort on taxes on goods and services—in particular, the VAT— followed by a smaller negative impact on corporate income and trade taxes.

Download or read book Vulnerability of Tax Revenue in Resource Rich Countries written by Christian von Haldenwang and published by . This book was released on 2015 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: Conventional wisdom has it that natural resource dependence is associated with increased vulnerability to external shocks emanating from sudden supply and demand changes in the global economy. This paper explores to what extent government revenue in low- and middle-income countries is affected by different kinds of shocks and whether these effects are different for resource-rich as compared to non-resource-rich countries. Based on data from 176 countries between 1980-2010, we measure the elasticity of tax revenue in resource-rich countries with respect to two kinds of shocks: exchange rate pressure and terms of trade shocks. We find that government revenue in resource-rich countries is more volatile, but not necessarily more vulnerable, in particular with regard to terms of trade shocks. Poorer resource-rich countries are more vulnerable than their higher-income counterparts. Vulnerability in resource-rich countries has significantly decreased in the 2000s as compared to previous decades. Introducing institutional variables such as political regime type or bureaucratic quality we find that the general institutional characteristics of a country may not always reflect the quality of its management of natural resources. Still, results provide some support to those arguments that stress the relevance of good governance in the context of the so-called “resource curse”

Download or read book Natural Resource Endowments Governance and the Domestic RevenueEffort Evidence from a Panel of Countries written by Fabian Bornhorst and published by INTERNATIONAL MONETARY FUND. This book was released on 2008-07-01 with total page 10 pages. Available in PDF, EPUB and Kindle. Book excerpt: The recent development literature stresses that countries that receive large revenues from natural resource endowments typically raise less revenue from domestic taxation, and that this creates governance problems because the lower domestic tax effort reduces the incentive for the public scrutiny of government. Our results from a panel of 30 hydrocarbon producing countries indicate that the offset between hydrocarbon revenues and revenues from other domestic sources is about 20 percent but that it is invariant to governance indicators.

Download or read book Key Issues in Natural Resource Taxation and Revenue Management in the Commonwealth written by Daniel Wilde and published by Commonwealth Secretariat. This book was released on 2016-10-11 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt: Public policies in taxation and revenue management are key to ensuring natural resource wealth results in economic development. Tax policy and systems should ensure that whenever natural resources are extracted, the host state receives a fair share of revenue. Revenue management policies are required to ensure that government revenues from natural resources are wisely used to finance sustainable economic development. This Economic Paper analyses key issues in natural resource taxation and revenue management and recommends policies that can improve countries’ economic performance. The discussion draws on economic theory, empirical evidence and the work of the Commonwealth Secretariat.

Download or read book Direct Distribution of Resource Revenues written by Mr.Sanjeev Gupta and published by International Monetary Fund. This book was released on 2014-06-10 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: Some scholars have argued that direct distribution of natural resource revenues to the population would help resource-rich countries escape the “resource curse.” This discussion note analyzes whether this proposal is a viable policy alternative for resource-rich countries. The first priority for policymakers is to establish fiscal policy objectives to support macroeconomic stability and development objectives. In this regard, the establishment of an adequate fiscal framework that informs decisions on how much to save and invest, or how to smooth out revenue volatility, and deal with exhaustibility issues should precede any discussion of direct distribution of resource wealth to the population.

Download or read book The Oxford Handbook of Sovereign Wealth Funds written by Douglas Cumming and published by Oxford University Press. This book was released on 2017 with total page 737 pages. Available in PDF, EPUB and Kindle. Book excerpt: Sovereign Wealth Funds have become increasingly powerful and influential investors. Their increasing role, and unusual character as both political and market actors, raise a number of issues with regard to finance, politics, regulation, and international business. This handbook draws together the growing but fragmented research on SWFs.

Download or read book Benefiting the Resource Rich written by Gøril Havro and published by . This book was released on 2011-06 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: While natural resource revenues ought to enable development, past experiences with the "Paradox of Plenty" have shown that mineral and oil wealth often represents a curse rather than a blessing, inducing slower growth and higher levels of poverty. Many resource rich countries have high poverty rates and are among recipients of international aid. This paper looks at how lessons from successful resource rich countries can provide lessons for resource management. It also considers how international donors can act to facilitate such processes. Norway and Chile are small open economies with high concentration in petroleum and copper, respectively. Yet the interaction between good institutions and fiscal policy, facilitated by the use of resource funds, has allowed both countries to largely escape the resource curse. Both countries have prioritised institutional development before engaging in heavy resource extraction. Maintaining a broad tax base, developing linkages to the rest of the economy, investing in human capital, and engaging in political consensus-building have helped retain incentives that limit rent-seeking. Many countries facing high inflows of natural resource rents also have weak institutions. For these countries, strengthening institutions through developing the skill and efficiency of civil servants and committing to transparency and accountability can help change the pay-offs from engaging in corrupt practices or rent-seeking. Yet in many cases, large-scale institution building might be beyond these countries' immediate capacity, leaving an important opportunity for international donors. Aid, in the traditional sense, is not the solution to the resource curse. Once the natural resource revenues have started flowing, resource rich countries are not primarily in need of further financial inflows. Fostering long-term development here is rather a question of technical support and capacity building, support for international anti-corruption mechanisms and imposing transparency and legal requirements on national companies operating in these countries.

Download or read book Oil to Cash written by Todd Moss and published by CGD Books. This book was released on 2015-06-10 with total page 190 pages. Available in PDF, EPUB and Kindle. Book excerpt: Oil to Cash explores one option to help countries with new oil revenue avoid the so-called resource curse: just give the money directly to citizens. A universal, transparent, and regular cash transfer would not only provide a concrete benefit to regular people, but would also create powerful incentives for citizens to hold their government accountable. Oil to Cash details how and where this idea could work and how policymakers can learn from the experiences with cash transfers in places like Mexico, Mongolia, and Alaska.

Download or read book Can the Natural Resource Curse Be Turned Into a Blessing The Role of Trade Policies and Institutions written by Mr.Rabah Arezki and published by INTERNATIONAL MONETARY FUND. This book was released on 2007-03-01 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We criticize existing empirical results on the detrimental effects of natural resource dependence on the rate of economic growth after controlling for institutional quality, openness, and initial income. These results do not survive once we use instrumental variables techniques to correct for the endogenous nature of the explanatory variables. Furthermore, they suffer from omitted variables bias as they overestimate the effect of initial income per capita and thus underestimate the speed of conditional convergence. Instead, we provide new evidence for the impact of natural resource dependence on income per capita in a systematic empirical cross-country framework. In addition to a significant negative direct impact of natural resources on income per capita, we find a significant indirect effect of natural resources on institutions. We allow for interaction effects and provide evidence that the natural resource curse is particularly severe for economic performance in countries with a low degree of trade openness. Adopting policies directed toward more trade openness may thus soften the impact of a resource curse. We also check the robustness of our results by using a variety of instruments and also employing the ratio of natural capital rather than natural resource exports to national income as an explanatory variable. We find evidence that resource abundance, measured by the stock of natural capital, also induces a resource curse, but less severely for countries that are relatively open.

Download or read book From Curse To Blessing written by Irakli Khodeli and published by Wiley-Blackwell. This book was released on 2009-06-08 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book investigates how revenues derived from natural resource exploitation can be translated into real benefits for the citizens of resource-rich countries Shows how despite unprecedentedly high prices of natural resources such as oil and gas on the global market, resource-rich countries are home to over 60% of the world’s poorest people Discusses the counterintuitive phenomenon known as the “resource curse” and how mineral wealth can impoverish countries Presents the major obstacles for the international community in the fight against poverty and in the achievement of the Millennium Development Goals Debates the ways to lift the curse, and suggests policy interventions to break the vicious circle Includes cross-country comparisons as well as focussing on countries such as Azerbaijan, Democratic Republic of Congo, Nigeria and the Russian Federation

Download or read book A Conditional Revenue Curse written by Kodjovi M. Eklou and published by . This book was released on 2016 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: One of the main obstacles to the sustainability of governments' revenues in developing countries is the dependency on the rent generated by nonrenewable natural resources. Resource-rich countries have weak incentives to design and maintain efficient tax systems. I consider a theoretical model where the government of a resource-rich country, has to decide whether to undertake a costly investment in its ability to collect taxes and I incorporate progressive income tax. The model predicts that a resource-rich country has more incentives to invest in its ability to collect tax revenues, the more progressiveis the tax schedule because expected returns to that investment may be higher. I test this prediction, named the conditional revenue curse hypothesis, in a sample of 57 developing countries over the period 1981-2005. In order to deal with the endogeneity of natural resources, I construct a country-specific natural resource price index and use its growth rate as an instrument for natural resource rent windfalls.

Download or read book Macroeconomic Stability in Resource Rich Countries written by Ms.Elva Bova and published by International Monetary Fund. This book was released on 2016-02-23 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: Resource-rich countries face large and persistent shocks, especially coming from volatile commodity prices. Given the severity of the shocks, it would be expected that these countries adopt countercyclical fiscal policies to help shield the domestic economy. Taking advantage of a new dataset covering 48 non-renewable commodity exporters for the period 1970-2014, we investigate whether fiscal policy does indeed play a stabilizing role. Our analysis shows that fiscal policy tends to have a procyclical bias (mainly via expenditures) and, contrary to others, we do not find evidence that this bias has declined in recent years. Adoption of fiscal rules does not seem to reduce procyclicality in a significant way, but the quality of political institutions does matter. Finally, non-commodity revenues tend to respond only to persistent changes in commodity prices.

Download or read book The World Bank Research Observer written by and published by . This book was released on 2003 with total page 300 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Direct Distribution of Resource Revenues written by Mr.Sanjeev Gupta and published by International Monetary Fund. This book was released on 2014-06-10 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: Some scholars have argued that direct distribution of natural resource revenues to the population would help resource-rich countries escape the “resource curse.” This discussion note analyzes whether this proposal is a viable policy alternative for resource-rich countries. The first priority for policymakers is to establish fiscal policy objectives to support macroeconomic stability and development objectives. In this regard, the establishment of an adequate fiscal framework that informs decisions on how much to save and invest, or how to smooth out revenue volatility, and deal with exhaustibility issues should precede any discussion of direct distribution of resource wealth to the population.

Download or read book The Oil Curse written by Michael L. Ross and published by Princeton University Press. This book was released on 2013-09-08 with total page 314 pages. Available in PDF, EPUB and Kindle. Book excerpt: Countries that are rich in petroleum have less democracy, less economic stability, and more frequent civil wars than countries without oil. What explains this oil curse? And can it be fixed? In this groundbreaking analysis, Michael L. Ross looks at how developing nations are shaped by their mineral wealth--and how they can turn oil from a curse into a blessing. Ross traces the oil curse to the upheaval of the 1970s, when oil prices soared and governments across the developing world seized control of their countries' oil industries. Before nationalization, the oil-rich countries looked much like the rest of the world; today, they are 50 percent more likely to be ruled by autocrats--and twice as likely to descend into civil war--than countries without oil. The Oil Curse shows why oil wealth typically creates less economic growth than it should; why it produces jobs for men but not women; and why it creates more problems in poor states than in rich ones. It also warns that the global thirst for petroleum is causing companies to drill in increasingly poor nations, which could further spread the oil curse. This landmark book explains why good geology often leads to bad governance, and how this can be changed.

Download or read book Handbook of Research on Public Finance in Europe and the MENA Region written by Erdo?du, M. Mustafa and published by IGI Global. This book was released on 2016-05-03 with total page 652 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since the 1970s, globalization has created an economic environment of interdependency between nations. Now, many countries in European and the MENA (Middle East and Northern Africa) regions must grapple with the need to increase public revenue while maneuvering through a global “race-to-the-bottom” tax competition. The Handbook of Research on Public Finance in Europe and the MENA Region explores economic development and public finance by providing critical insight into the use of public finance and policy and illuminating the intricacies of these topics through discussion of theory, empirical work, and policy objectives. This book is ideally designed for business professionals, policy makers, financers, students and researchers in the fields of public policy and economics.

Download or read book Natural Resources Neither Curse nor Destiny written by Daniel Lederman and published by World Bank Publications. This book was released on 2006-10-23 with total page 396 pages. Available in PDF, EPUB and Kindle. Book excerpt: 'Natural Resources: Neither Course nor Destiny' brings together a variety of analytical perspectives, ranging from econometric analyses of economic growth to historical studies of successful development experiences in countries with abundant natural resources. The evidence suggests that natural resources are neither a curse nor destiny. Natural resources can actually spur economic development when combined with the accumulation of knowledge for economic innovation. Furthermore, natural resource abundance need not be the only determinant of the structure of trade in developing countries. In fact, the accumulation of knowledge, infrastructure, and the quality of governance all seem to determine not only what countries produce and export, but also how firms and workers produce any good.