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Ugandan oil - a blessing or a curse?
| Content Provider | Semantic Scholar |
|---|---|
| Author | Hassler, John Krusell, Per Shifa, Abdulaziz B. Spiro, Daniel |
| Copyright Year | 2013 |
| Abstract | This paper addresses a number of macroeconomic concerns facing a developing country that falls upon a large stock of a valuable natural resource. Our focus is on Uganda, on whose territory substantial amounts of oil were recently discovered. Although this rather unexpected event is likely to affect the lives of many– in fact, arguably most– Ugandans, history is full of examples illustrating that natural-resource discoveries cannot simply be considered manna from heaven. The finding of oil may indeed be a blessing but it can also easily turn into a curse. The purpose of this report is to analyze the key implications of an increase in revenue and to discuss some central related policy issues, such as how fast to extract the oil, how to manage the revenues, and how and when to use the revenues. Our treatment does not aim to be definitive but is rather designed to build a framework with the perspective of which one can discern and analyze the key issues. We will start by briefly describing Uganda’s economy and some recent macroeconomic trends. We then report estimates we collected concerning the size and value of the oil discovery. In order to analyze how the oil use ought to influence the macroeconomic growth process, we then construct a tractable macroeconomic and use it to look the key macroeconomic tradeoffs facing Uganda. In particular, the model is well suited for a quantitative study of the tradeoffs between investing and consuming are affected by the oil discovery. |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | http://hassler-j.iies.su.se/PAPERS/UgandaOil.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
