European Parliament Library

Resource Windfalls, Macroeconomic Stability and Growth :, The Role of Political Institutions, Kazim Kazimov, Kirk Hamilton, Rabah Arezki

We use a new dataset on non-resource GDP to examine the performance of commodity-exporting countries in terms of macroeconomic stability and economic growth in a panel of up to 129 countries during the period 1970-2007. Our main findings are threefold. First, we find that overall government spending in commodity-exporting countries has been procyclical. Second, we find that resource windfalls initially crowd out non-resource GDP which then increases as a result of the fiscal expansion. Third, we find that in the long run resource windfalls have negative effects on non-resource sector GDP growth. Yet, the effects turn out to be statistically insignificant when controlling for government spending. Both the effects of resource windfalls on macroeconomic stability and economic growth are moderated by the quality of political institutions
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. Data; A. Non-resource GDP (NRGDP); B. Resource Windfalls; C. Political Institutions: Democracy; III. Estimation Strategy and Main Results; A. Preliminary Analysis; B. Macroeconomic Stability; C. Economic Growth; IV. Robustness Checks; V. Summary; Appendix; Figure 1. Evolution of Government Spending and Resource Windfalls in Venezuela; Figure 2. Evolution of Government Spending and Resource Windfalls in Norway; Table 1. Summary Statistics; Table 2. Panel Unit Root Tests; Table 3. Panel Cointegration Tests
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (39 p.)
Specific Material Designation
Form Of Item

Library Locations

  • EP Library Luxembourg

    Rue du Fort Thüngen, Luxembourg, L-1313, LU
  • EP Library Brussels

    60 rue Wiertz, Brussels, B-1047, BE
  • EP Library Strasbourg

    7 Place Adrien Zeller, Allée du Printemps, Strasbourg, F-67070, FR