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Do Resource Windfalls Improve the Standard of Living in Sub-Saharan African Countries?Evidence from a Panel of Countries

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by Munseob Lee & Cheikh A. Gueye
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Do Resource Windfalls Improve the Standard of Living in Sub-Saharan African Countries?Evidence from a Panel of Countries by Munseob Lee & Cheikh A. Gueye

We examine the impact of resource windfall on the standard of living both in the short-run and long-run, using a sample of 130 countries, 1963-2007. Then, we systematically investigate the effect of resource windfall on welfare in three different groups of countries: We find that in the short-run resource windfall is welfare enhancing in the whole sample, especially via increases in income and decreases in inequality. However, in SSA countries, the size of welfare improvement is small and it is smaller and almost zero after one year in fragile Sub-Saharan Arican (SSA) countries. In the whole sample, a resource windfall shock leads to significant welfare growth even in the long-run, but we couldn’t find any significant long-run effect of resource windfall in SSA countries.

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Ebook Details
Pages: 38
Size: 940 KB
Publisher: INTERNATIONAL MONETARY FUND
Date published:   2015
ISBN: 9781484336588 (DRM-EPUB)

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This product is listed in the following categories:

Nonfiction > Business & Economics > Economics
Nonfiction > Business & Economics > International > Economics
Nonfiction > Business & Economics > Economics > Macroeconomics

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Nonfiction > Business & Economics > International
Nonfiction > Business & Economics > Economics
Nonfiction > Business & Economics > International > Economics
Nonfiction > Business & Economics > Economics > Macroeconomics

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01/22/2017
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