Macroeconomic Stability in Resource-rich Countries: The Role of Fiscal Policy

Bova, Elva; Medas, Paulo; Poghosyan, Tigran

doi:10.7172/2353-6845.jbfe.2018.1.5

Cited by 23 publications

(16 citation statements)

References 29 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The adoption of fiscal rules does not appear to be associated with more acyclical or countercyclical policies. • A recent IMF study of resource-rich countries finds that fiscal rules and resource funds have not reduced the procyclicality of government expenditure in a statistically significant way (IMF 2015a; the detailed econometric analysis can be found in Bova, Medas, and Poghosyan [2016]). The study also shows the importance of institutional quality to help limit procyclicality.…”

Section: Box 72 Fiscal Rules In Resource-rich Countries: Econometricmentioning

confidence: 99%

“…There is little evidence of a dampening effect of resource funds on policy procyclicality. Accumulation of gross assets in a resource fund has not necessarily represented genuine financial saving and wealth accumulation (Heuty and Aristi 2010;Villafuerte, López-Murphy, and Ossowski 2010;Natural Resource Governance Institute 2014;Bova, Medas, and Poghosyan 2016). The econometric evidence is reviewed in box 8.3.…”

Section: Effectiveness Of Stabilization Savings and Financing Fundsmentioning

confidence: 99%

See 1 more Smart Citation

Fiscal Management in Resource-Rich Countries: Essentials for Economists, Public Finance Professionals, and Policy Makers

Ossowski¹,

Halland²

2016

View full text Add to dashboard Cite

World Bank Studies are published to communicate the results of the Bank's work to the development community with the least possible delay. The manuscript of this paper therefore has not been prepared in accordance with the procedures appropriate to formally edited texts. This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Nothing herein shall constitute or be considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved.

show abstract

Section: Box 72 Fiscal Rules In Resource-rich Countries: Econometricmentioning

confidence: 99%

Section: Effectiveness Of Stabilization Savings and Financing Fundsmentioning

confidence: 99%

Fiscal Management in Resource-Rich Countries: Essentials for Economists, Public Finance Professionals, and Policy Makers

Ossowski¹,

Halland²

2016

View full text Add to dashboard Cite

show abstract

“…Likewise, Bova et al. () do not find evidence that adopting fiscal rules and resource funds have reduced the procyclical bias in non‐renewable commodity exporters; however, they find that better institutional quality reduces procyclicality.…”

Section: Introductionmentioning

confidence: 96%

Fiscal Policy in Oil‐exporting Countries: The Roles of Oil Funds and Institutional Quality

Koh

2016

Review Development Economics

View full text Add to dashboard Cite

Oil‐exporting countries face challenges in the conduct of fiscal policy owing to volatile oil revenues, especially in countries with weak institutions. Many oil exporters have established oil funds to delink government expenditure from oil revenues; however, their effectiveness remains unresolved. This paper examines the roles of oil funds and institutional quality in reducing fiscal procyclicality and macroeconomic volatility in 42 oil‐exporting countries from 1960 to 2014 using panel vector autoregression techniques. The results show that oil funds are effective in reducing fiscal procyclicality in countries with high institutional quality. There is also a reduction in the procyclical bias in those with low institutional quality but the statistical evidence is weak. Nevertheless, oil funds are associated with reduced volatility of government consumption and the real exchange rate in countries with low institutional quality. These findings give credence to the macroeconomic stabilization role of oil funds but also reinforce the importance of good institutions.

show abstract

“…Frankel, Vegh, and Vuletin (2013) find that IQ plays a key role in reducing procyclicality, using data from advanced and emerging market economies. Bova, Medas, and Poghosyan (2016) point out that the quality of institutions in resource-rich countries that have been successful in limiting the negative impact of commodity price volatility (namely Botswana, Chile, and Norway) is significantly higher than that of their peers. Third, Chile's fiscal institutions may provide valuable lessons for many sub-Saharan African countries.…”

Section: Chilementioning

confidence: 98%

“…See IMF country reports on Chile (IMF 2013a and 2015a).20 Ossowski and others (2008) andBova, Medas, and Poghosyan (2016) find that adoption of SFIs does not seem to reduce procyclicality in a significant way, but the quality of political institutions does matter.©International Monetary Fund. Not for Redistribution…”

mentioning

confidence: 99%