Nigeria's Growth Record : Dutch Disease or Debt Overhang?

Nigeria's oil boom has not brought an end to perennial stagnation in the non-oil economy. Is this the unavoidable consequence of the resource boom or have misguided policies contributed? This paper indicates that the extreme volatility of expenditure rather than Dutch Disease effects are behind the disappointing non-oil growth record. Fiscal policies failed to smooth highly volatile oil income; on the contrary government expenditure was more volatile than oil income. The authors provide econometric evidence showing that volatility of expenditure was increased by debt overhang problems. Moreove... Mehr ...

Verfasser: Budina, Nina
Pang, Gaobo
van Wijnbergen, Sweder
Erscheinungsdatum: 2007
Verlag/Hrsg.: World Bank
Washington
DC
Schlagwörter: ACCESS TO CAPITAL MARKETS / ADVERSE IMPACT / AGGREGATE EXPENDITURE / AGRICULTURE / ALLOCATION / ANNUAL AVERAGE RATE / BENCHMARK / BENCHMARKS / BLACK MARKET / BUDGET PROCESS / CAPITAL ACCUMULATION / CAPITAL EXPENDITURE / CAPITAL INVESTMENT / CAPITAL MARKET / CAPITAL SPENDING / CASH FLOW / CENTRAL BANK / COMMODITY PRICES / CONSUMERS / COST RECOVERY / DEBT / DEBT BURDEN / DEBT CRISIS / DEBT RELIEF / DEBT SERVICE / DEFICIT FINANCING / DEVELOPMENT ECONOMICS / DOMESTIC BORROWING / DOMESTIC DEBT / ECONOMETRICS / ECONOMIC GROWTH / ECONOMIC OUTLOOK / ECONOMIC PERFORMANCE / ECONOMIC STRUCTURE / ENERGY PRICES / EXCHANGE RATE POLICY / EXCHANGE RATES / EXCHANGE RESERVES / EXPENDITURE / EXPENDITURE CUTS / EXPENDITURE GROWTH / EXPENDITURE PLANS / EXPENDITURES / EXPORTS / EXTERNAL BORROWING / EXTERNAL DEBT / EXTERNAL LOANS / FACTOR PRICES / FINANCIAL LIMITS / FINANCIAL MARKETS
Sprache: Englisch
Permalink: https://search.fid-benelux.de/Record/base-29048913
Datenquelle: BASE; Originalkatalog
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Link(s) : https://hdl.handle.net/10986/7418

Nigeria's oil boom has not brought an end to perennial stagnation in the non-oil economy. Is this the unavoidable consequence of the resource boom or have misguided policies contributed? This paper indicates that the extreme volatility of expenditure rather than Dutch Disease effects are behind the disappointing non-oil growth record. Fiscal policies failed to smooth highly volatile oil income; on the contrary government expenditure was more volatile than oil income. The authors provide econometric evidence showing that volatility of expenditure was increased by debt overhang problems. Moreover, they also find evidence of voracity effects that exacerbated expenditure volatility prior to 1984.