Hidden Bibliographic Details
| Other authors / contributors: | International Monetary Fund. African Department, issuing body.
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| ISBN: | 1283557983
9781283557986
1455248428
9781455248421
9781455202119
1455202118
9781455200771
1455200778
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| ISSN: | 2227-8885
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| Notes: | Includes bibliographical references (page 22).
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| Summary: | Recent empirical studies have shown an inverse relation between natural resource intensity and long-term growth, implying that the natural resources generally impede economic growth through various channels (the "natural resource curse"). This paper departs from these studies by exploring the intersectoral linkages between oil and non-oil sectors in a cross-country perspective. The paper shows that the applicability of ́"natural resource curse" across oil-based economies should be treated with caution as the externalities of the oil sector highly depend on the countries' degree of oil-intensity. In particular, the results show that, in low oil-intensity economies, the incentives to strengthen both fiscal and private sector institutions lead to positive inter-sectoral externalities. In contrast, weaker incentives in high oil-intensity economies adversely affect fiscal and private sector institutions and consequently lead to negative inter-sectoral externalities.
Recent empirical studies have shown an inverse relation between natural resource intensity and long-term growth, implying that the natural resources generally impede economic growth through various channels (the ђج́natural resource curѕеђح́). This paper departs from these studies by exploring the intersectoral linkages between oil and non-oil sectors in a cross-country perspective. The paper shows that the applicability of ђج́natural resource curѕеђح́ across oilbased economies should be treated with caution as the externalities of the oil sector highly depend on the countrіеѕђة́ degree of oil-intensity. In particular, the results show that, in low oil-intensity economies, the incentives to strengthen both fiscal and private sector institutions lead to positive inter-sectoral externalities. In contrast, weaker incentives in high oil-intensity economies adversely affect fiscal and private sector institutions and consequently lead to negative inter-sectoral externalities.
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| Other form: | Print version: Klein, Nir. Linkage between the Oil and Non-oil Sectors--A Panel VAR Approach. Washington : International Monetary Fund, ©2010 9781455200771
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| Standard no.: | 10.5089/9781455248421.001
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