Fiscal Sustainability, Public Investment, and Growth in Natural Resource-Rich, Low-Income Countries: The Case of Cameroon
IMF Working Papers, June 11, 2013
Source details
- Canonical URL
- Fiscal Sustainability, Public Investment, and Growth in Natural Resource-Rich, Low-Income Countries: The Case of Cameroon
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Bibliographic details
- Authors: Issouf Samaké, Priscilla S Muthoora, Bruno Versailles
- Published: June 11, 2013
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484318256.001
Authors and Publication
- By Issouf Samaké, Priscilla S Muthoora, Bruno Versailles
- June 11, 2013
- IMF Working Papers, Working Paper No. 2013/144, Issue: 144, Volume: 2013, Pages: 35
- DOI: https://doi.org/10.5089/9781484318256.001
- Stock No: WPIEA2013144
- ISBN: 9781484318256
- ISSN: 1018-5941
- Citation format provided: Issouf Samaké, Priscilla S Muthoora, and Bruno Versailles. "Fiscal Sustainability, Public Investment, and Growth in Natural Resource-Rich, Low-Income Countries: The Case of Cameroon", IMF Working Papers 2013, 144 (2013), accessed 9/17/2026, https://doi.org/10.5089/9781484318256.001
Research Question and Scope
- Assesses implications of the use of oil revenue for public investment on growth and fiscal sustainability in Cameroon.
- Focus on effects of public investment financed by oil revenue on key fiscal indicators, such as:
- the non-oil primary deficit
- public debt
Methodology
- Develops a dynamic stochastic general equilibrium (DSGE) model to analyze:
- effects of public investment on growth
- paths of key fiscal indicators under different policy scenarios
Key Findings
- Policy scenarios indicate:
- 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:
- 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.
Subject Areas and Keywords
- Subject: Expenditure, Fiscal policy, Oil production, Oil, gas and mining taxes, Production, Public investment spending, Taxes
- Keywords: Africa, Cameroon, capital stock, debt ratio, DSGE, efficiency level, efficiency parameter, fiscal policy, gas and mining taxes, Global, growth, investment flow, investment path, investment-growth nexus, low-income countries, natural resource, natural resource-rich countries, Oil, Oil production, public investment, Public investment spending, Sub-Saharan Africa, WP
Availability and Formats
- Also available in French
- Download PDF and additional formats available via IMF eLibrary (note: access details provided on the source)
IMF Working Paper No. 2013/144
Content in this bundle
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