Arbeitspapier

Commodity windfalls, polarization, and net foreign assets: Panel data evidence on the voracity effect

This paper examines the effects that windfalls from international commodity price booms have on net foreign assets in a panel of 145 countries during the period 1970-2007. The main finding is that windfalls from international commodity price booms lead to a significant increase in net foreign assets, but only in countries that are ethnically homogeneous. In highly ethnically polarized countries, net foreign assets significantly decreased. To explain this asymmetry, the paper shows that in ethnically polarized countries commodity windfalls lead to large increases in government consumption expenditures and political corruption. The paper's findings are consistent with theoretical models of the current account that have a built-in voracity effect.

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 3656

Klassifikation
Wirtschaft
Current Account Adjustment; Short-term Capital Movements
Resource Booms
Cultural Economics; Economic Sociology; Economic Anthropology: General
Thema
commodity windfalls
net foreign assets
polarization

Ereignis
Geistige Schöpfung
(wer)
Arezki, Rabah
Brückner, Markus
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2011

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Arezki, Rabah
  • Brückner, Markus
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 2011

Ähnliche Objekte (12)