The Oil Nouveau-Riche and Arms Imports

The Oil Nouveau-Riche and Arms Imports

Countries that strike it rich when exploring for oil and gas often fail to see growth materialize. This paper shows that one way things can get messy is via squandering new wealth, based on future resource revenues, on arms imports. In the five yea...

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Bibliographic Details
Main Author: Vezina, Pierre-Louis
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2020
Subjects:
OIL-IMPORTING COUNTRIES
ARMS TRADE
RESOURCE CURSE
OIL PRICE
OIL EXPORTERS
GIANT DISCOVERIES
OIL AND GAS REVENUE
NEW WEALTH
RESOURCE ALLOCATION
OIL AND GAS EXPLORATION
SQUANDERED WEALTH
Online Access:http://documents.worldbank.org/curated/en/302681598970589744/The-Oil-Nouveau-Riche-and-Arms-Imports
http://hdl.handle.net/10986/34422
id okr-10986-34422
recordtype oai_dc
spelling okr-10986-344222022-09-20T00:11:43Z The Oil Nouveau-Riche and Arms Imports Vezina, Pierre-Louis OIL-IMPORTING COUNTRIES ARMS TRADE RESOURCE CURSE OIL PRICE OIL EXPORTERS GIANT DISCOVERIES OIL AND GAS REVENUE NEW WEALTH RESOURCE ALLOCATION OIL AND GAS EXPLORATION SQUANDERED WEALTH Countries that strike it rich when exploring for oil and gas often fail to see growth materialize. This paper shows that one way things can get messy is via squandering new wealth, based on future resource revenues, on arms imports. In the five years following a giant oil or gas discovery, arms imports increase by 25 percent. The effect is even larger, at 51 percent, when the price of oil is as high as $80 per barrel. These estimates can be interpreted causally as the timing of giant oil discoveries is unpredictable due to the uncertain nature of exploration. 2020-09-03T14:39:51Z 2020-09-03T14:39:51Z 2020-09 Working Paper http://documents.worldbank.org/curated/en/302681598970589744/The-Oil-Nouveau-Riche-and-Arms-Imports http://hdl.handle.net/10986/34422 English Policy Research Working Paper;No. 9374 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa North Africa Sub-Saharan Africa
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic OIL-IMPORTING COUNTRIES
ARMS TRADE
RESOURCE CURSE
OIL PRICE
OIL EXPORTERS
GIANT DISCOVERIES
OIL AND GAS REVENUE
NEW WEALTH
RESOURCE ALLOCATION
OIL AND GAS EXPLORATION
SQUANDERED WEALTH
spellingShingle OIL-IMPORTING COUNTRIES
ARMS TRADE
RESOURCE CURSE
OIL PRICE
OIL EXPORTERS
GIANT DISCOVERIES
OIL AND GAS REVENUE
NEW WEALTH
RESOURCE ALLOCATION
OIL AND GAS EXPLORATION
SQUANDERED WEALTH
Vezina, Pierre-Louis
The Oil Nouveau-Riche and Arms Imports
geographic_facet Africa
North Africa
Sub-Saharan Africa
relation Policy Research Working Paper;No. 9374
description Countries that strike it rich when exploring for oil and gas often fail to see growth materialize. This paper shows that one way things can get messy is via squandering new wealth, based on future resource revenues, on arms imports. In the five years following a giant oil or gas discovery, arms imports increase by 25 percent. The effect is even larger, at 51 percent, when the price of oil is as high as $80 per barrel. These estimates can be interpreted causally as the timing of giant oil discoveries is unpredictable due to the uncertain nature of exploration.
format Working Paper
author Vezina, Pierre-Louis
author_facet Vezina, Pierre-Louis
author_sort Vezina, Pierre-Louis
title The Oil Nouveau-Riche and Arms Imports
title_short The Oil Nouveau-Riche and Arms Imports
title_full The Oil Nouveau-Riche and Arms Imports
title_fullStr The Oil Nouveau-Riche and Arms Imports
title_full_unstemmed The Oil Nouveau-Riche and Arms Imports
title_sort oil nouveau-riche and arms imports
publisher World Bank, Washington, DC
publishDate 2020
url http://documents.worldbank.org/curated/en/302681598970589744/The-Oil-Nouveau-Riche-and-Arms-Imports
http://hdl.handle.net/10986/34422
_version_ 1764480864346963968

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