Nigeria's Growth Record : Dutch Disease or Debt Overhang?
Nigeria's oil boom has not brought an end to perennial stagnation in the non-oil economy. Is this the unavoidable consequence of the resource boom or have misguided policies contributed? This paper indicates that the extreme volatility of expe...
Main Authors: | , , |
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Format: | Policy Research Working Paper |
Language: | English |
Published: |
World Bank, Washington, DC
2012
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Subjects: | |
Online Access: | http://documents.worldbank.org/curated/en/2007/06/7726727/nigerias-growth-record-dutch-disease-or-debt-overhang http://hdl.handle.net/10986/7418 |
Summary: | Nigeria's oil boom has not brought
an end to perennial stagnation in the non-oil economy. Is
this the unavoidable consequence of the resource boom or
have misguided policies contributed? This paper indicates
that the extreme volatility of expenditure rather than Dutch
Disease effects are behind the disappointing non-oil growth
record. Fiscal policies failed to smooth highly volatile oil
income; on the contrary government expenditure was more
volatile than oil income. The authors provide econometric
evidence showing that volatility of expenditure was
increased by debt overhang problems. Moreover, they also
find evidence of voracity effects that exacerbated
expenditure volatility prior to 1984. |
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