Fiscal Sustainability, Public Investment, and Growth in Natural Resource-Rich, Low-Income Countries : The Case of Cameroon

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Price:  $18.00

Author/Editor: Issouf Samaké, Priscilla S Muthoora, Bruno Versailles
Release Date: © June, 2013
ISBN : 978-1-48431-825-6
Stock #: WPIEA2013144
English
Stock Status: On back-order

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Description

This paper assesses the implications of the use of oil revenue for public investment on growth and fiscal sustainability in Cameroon. We develop a dynamic stochastic general equilibrium model to analyze the effects of such investment on growth and on the path of key fiscal indicators, such as the non-oil primary deficit and public debt. Policy scenarios show that Cameroon’s large infrastructural needs and relatively low current debt levels could justify a temporary deviation from traditional policy advice that suggests saving part of the oil revenue to smooth expenditure over time. Model simulations show that a relatively high degree of efficiency of public investment is needed for scaled-up public investment to make a significant contribution to growth, while maintaining fiscal sustainability.

Taxonomy

Economic policy , Fiscal policy




More publications in this series: Working Papers


More publications by: Issouf Samaké ; Priscilla S Muthoora ; Bruno Versailles