Series: IMF Working Papers
Author(s): Ali Alichi , and Rabah Arezki
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 May 2009
Keywords: resource curse, investment and growth, capital movements, exporting countries, closed economy, foreign capital,
The paper provides an alternative explanation for the "resource curse" based on the income effect resulting from high government current spending in resource rich economies. Using a simple life cycle framework, we...