{"title":"The fiscal effects of natural resource dependency in sub-Saharan Africa","authors":"Rosemary S. Taylor","doi":"10.1111/1477-8947.12400","DOIUrl":null,"url":null,"abstract":"This study investigates the fiscal implications of natural resource dependence in resource-rich sub-Saharan African economies, particularly focusing on the impact of resource revenues on tax revenues, government spending and national savings to assess the sustainability of natural resource reinvestments. Employing a two-step system Generalized Method of Moments on a dataset with 672 observations, the study identifies significant reductions in non-resource tax revenues, government current consumption and overall savings associated with an increase in resource revenues. Conversely, a positive coefficient is noted for public investment. The study underscores the importance of high-quality institutions in mitigating adverse effects and controlling increased public investments. Recommendations include directing resource revenues towards well-structured taxation frameworks and investing in efficient institutions to manage current consumption, monitor public investment growth and enhance savings. These measures are crucial for curbing procyclical spending and promoting sustainable development in resource-rich sub-Saharan African economies.","PeriodicalId":49777,"journal":{"name":"Natural Resources Forum","volume":"36 1","pages":""},"PeriodicalIF":3.5000,"publicationDate":"2024-01-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Natural Resources Forum","FirstCategoryId":"90","ListUrlMain":"https://doi.org/10.1111/1477-8947.12400","RegionNum":4,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ENVIRONMENTAL SCIENCES","Score":null,"Total":0}
引用次数: 0
Abstract
This study investigates the fiscal implications of natural resource dependence in resource-rich sub-Saharan African economies, particularly focusing on the impact of resource revenues on tax revenues, government spending and national savings to assess the sustainability of natural resource reinvestments. Employing a two-step system Generalized Method of Moments on a dataset with 672 observations, the study identifies significant reductions in non-resource tax revenues, government current consumption and overall savings associated with an increase in resource revenues. Conversely, a positive coefficient is noted for public investment. The study underscores the importance of high-quality institutions in mitigating adverse effects and controlling increased public investments. Recommendations include directing resource revenues towards well-structured taxation frameworks and investing in efficient institutions to manage current consumption, monitor public investment growth and enhance savings. These measures are crucial for curbing procyclical spending and promoting sustainable development in resource-rich sub-Saharan African economies.
期刊介绍:
Natural Resources Forum, a United Nations Sustainable Development Journal, focuses on international, multidisciplinary issues related to sustainable development, with an emphasis on developing countries. The journal seeks to address gaps in current knowledge and stimulate policy discussions on the most critical issues associated with the sustainable development agenda, by promoting research that integrates the social, economic, and environmental dimensions of sustainable development. Contributions that inform the global policy debate through pragmatic lessons learned from experience at the local, national, and global levels are encouraged.
The Journal considers articles written on all topics relevant to sustainable development. In addition, it dedicates series, issues and special sections to specific themes that are relevant to the current discussions of the United Nations Commission on Sustainable Development (CSD). Articles must be based on original research and must be relevant to policy-making.
Criteria for selection of submitted articles include:
1) Relevance and importance of the topic discussed to sustainable development in general, both in terms of policy impacts and gaps in current knowledge being addressed by the article;
2) Treatment of the topic that incorporates social, economic and environmental aspects of sustainable development, rather than focusing purely on sectoral and/or technical aspects;
3) Articles must contain original applied material drawn from concrete projects, policy implementation, or literature reviews; purely theoretical papers are not entertained.