63
Figure 5: Counterfactual Hartwick rule
400
350
300
250
200
150
100
50
0
-50
-100
-150
Low
resource
dependence
Ghana
■ Zirnl
High
resource
dependence
. South Africa
ιιca ∙
• ∙ Peru
itɪiabwe Mexico
• India
_ ^Thailand
Korea, Rep. of
• Zambia
Guyana
• Bolivia
г Ecuador
» ~ t Chile
Egypt Arab Rep. of ∙ Indonesia
Malaysia *china
Λ
Nigeria
Venezuela, R. B. de
• Trinidad and Tobago
• Mauritania
• Gabon
Algeria» ∙ Congo, Rep. of
Low
capital
accum.
High
capital
accum.
0 5 10 15 20 25 30 35
% share of resource rents in GDP (average 1970-2000)
Source: World Bank (2006, Figure 4.1).
Figure 6: Alternative prescriptions for harnessing natural resource windfalls
Δ C
To
Ti
t
Key: The incremental consumption path indicated by ‘Developing’ is the optimal path
obtained by maximizing social welfare for a developing economy which suffers capital
scarcity and has to pay an interest premium on its outstanding foreign debt.
More intriguing information
1. Opciones de política económica en el Perú 2011-20152. Impact of Ethanol Production on U.S. and Regional Gasoline Prices and On the Profitability of U.S. Oil Refinery Industry
3. Conservation Payments, Liquidity Constraints and Off-Farm Labor: Impact of the Grain for Green Program on Rural Households in China
4. On the job rotation problem
5. The problem of anglophone squint
6. The name is absent
7. International Financial Integration*
8. The name is absent
9. Using Surveys Effectively: What are Impact Surveys?
10. Confusion and Reinforcement Learning in Experimental Public Goods Games