Abstract
This paper analyzes the impact of medium-term policy options in the context of gold resources depletion in Mali. Using a recursive-dynamic computable general equilibrium model calibrated to a 2006 Malian Social Accounting Matrix, we assess the impact of gold resources depletion in Mali and two policy options: the adoption of the permanent income hypothesis (PIH) and a “borrow and invest” scenario consisting at boosting public investment by 5% points of GDP. The depletion of gold resources in Mali would cause a substantial fall in GDP growth, and lead to unsustainable fiscal path if the government were to keep its current pattern of spending. Adopting either the “borrow and invest” fiscal approach or the PIH is likely to generate higher growth and a more sustainable fiscal framework compared to the status quo.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
