Resource Revenues Research Articles

Entrepreneurship opportunities for agriculture graduate and rural youth in India: a scoping review

The majority of the world’s population lives in rural areas whereas, in the case of India, 73% population is dependent on agriculture and related works as their mainstream revenue resources. Entrepreneurship in rural areas could be one of the utmost vital initiatives towards the country’s economic development under the adverse impacts of climate change. Entrepreneurship is a crucial feature for the sustainable survival of small-scale agriculture in a continuously increasing compound international economy. Contrarily, most rural entrepreneurs in developing nations, including India, face numerous problems due to the unavailable primary facilities in remote areas. Several agricultural entrepreneurship technologies have been scientifically studied and introduced by numerous countries. Information regarding the progress in modern agriculture entrepreneurship has become crucial for agriculture graduates and the rural youth engaged in the agriculture sector. Hence, it becomes essential for developed and developing economies to emphasize the large-scale demonstrations of agriculture entrepreneurship technologies. In the present manuscript, several such interventions are highlighted in the form of various points which will be of immense use to the self-reliant movement of India. In this endeavour, helpful information on agriculture entrepreneurship technologies from various research institutions and universities has been generated to benefit agriculture graduates and rural youth.

Unlocking the poverty and hunger puzzle: Toward democratizing the natural resource for accomplishing SDGs 1&2

The objective of this paper is to investigate the substantial effect of natural resource abundance on poverty and hunger of the UN 2030th agenda. For this purpose, we use the panel smooth transition regression model (PSTR) technique and a sample of 20 African economies for the period 2001 to 2017, to explore the relationship between natural resource abundance and poverty and between natural resources and hunger. Besides, the principal component analysis method was used to develop two composite indices to reflect the institutional quality and hunger. The empirical highlights confirm the nonlinearity for both models, and the thresholds of poverty and hunger take the values of 18.16 and 19.24 in each model, correspondingly. We confirm the significant impact of natural resource abundance and induced opportunities as remedies to the SDGs 1&2 looming challenge and the UN agendas. Due to the obvious significance of our findings and their repercussions for decision-makers, a state of emergency in the natural resources sector should be proclaimed to address SDGs 1&2. Indeed, fair natural resource revenue management could be a critical component in addressing Africa's endless tales of poverty and hunger.

Mining revenues and quality of public goods in sub‐Saharan Africa

AbstractIn this paper, we investigate the impact of public mining revenues on perception indicators of public goods quality in five mining countries that have recently experienced a boom in their government revenues: Burkina Faso, Ghana, D.R. Congo, Tanzania and Zambia. The effect of the tax revenue boom is identified using a difference‐in‐differences estimation. Our estimations indicate that people living in mining regions have a sense of structural disadvantage in terms of the provision of public goods; however, this perception is pro‐cyclical in the presence of revenue booms/busts. Our results hold even after taking into account the possible endogeneity of our measure of resource revenue.

Does Ghana, A Developing Resource-Rich Country, Need Sovereign Wealth Funds? A Case Study of Ghana’s Sovereign Wealth Funds

Natural resources generate wealth for developing resource-rich countries associated with substantial financial inflows. Managing such huge returns creates challenges resulting in corruption and mismanagement in developing resource-rich countries. Developing resource-rich countries have thus resorted to Sovereign Wealth Funds on the advice of their development partners. Meanwhile, developing resource-rich countries borrow to address developmental challenges. Ghana’s Petroleum Revenue Management Act creates Sovereign Wealth Funds. This paper argues that due to Ghana's developmental challenges, Ghana requires the immediate use of the revenue rather than borrowing domestically and overseas for capital projects. Ghana must rethink the creation of Sovereign Wealth Funds. Keywords : sovereign wealth funds, natural resources, resource revenue, corruption, mismanagement, borrowing. DOI: 10.7176/JLPG/130-01 Publication date: March 31 st 2023

Uranium and the Macro-Economy in Niger: An Empirical Investigation

Like many commodities, uranium price is notoriously volatile, and such volatility can have serious economic consequences for countries that export them. Niger, which is the fourth-largest producer of uranium in the world, has been dealing with uranium price fluctuations since the start of its production in 1972. Since 2011, Niger is also an oil-exporting country. However, Niger is still one of the poorest countries in the world, and policymakers are keen on learning the impact of natural resource revenue on the economy. Policymakers are particularly interested in knowing whether uranium export has been a curse instead of a blessing. As such, the present study seeks to analyze, empirically, the impact of uranium price fluctuations on key macroeconomic variables in Niger. More precisely, the objective of this article is to document the existence of Dutch "disease" or lack thereof in the economy. The study uses VAR and VECM methodologies and utilizes Granger causality tests, variance decomposition, and impulse response functions to guide the analysis. These approaches allow for an empirical deeper dive into the impact of the uranium sector on the economy. The article uses annual time series data covering the period from 1977 to 2015. The data comes from three main sources, including the World Development Indicators (WDI) database, the Central Bank of West African Countries dataset (EDEN), and Niger's National Institute of Statistics (INS) dataset. The results show that Niger's economy suffered from Dutch disease from uranium export. Indeed, the Granger causality tests show that uranium export revenue cannot be used to forecast real income in Niger. Furthermore, impulse response functions confirm the above result as a shock to uranium price and the resultant effects on money supply, inflation, and the real exchange rate is consistent with the Dutch "disease" theory. In general, uranium export revenue was the source of macroeconomic imbalances observed in the country during the period considered by the study. Now that Niger is also an exporter of oil in addition to uranium, policymakers should avoid the trap of Dutch "disease" by investing natural resources revenue strategically. Given Niger's development challenges, using natural resources revenue for public investment in infrastructure, health, and education should be a priority.

The effects of natural resource revenues on municipal finance

Abstract We investigate how revenues from taxing hydropower production affect local fiscal policy with data for municipalities in Switzerland in 1987–2015. Our instrumental variable approach uses exogenous variation in these revenues by combining the municipality-specific hydropower potential with the varying federally mandated ceiling on taxation of hydropower production. We find negative effects on tax rates and tax revenues, but insignificant spending effects. These results provide fresh evidence on how local authorities use exogenous revenues and on the flypaper effect for a setting with strong local fiscal autonomy and participatory institutions.

Revenues Sharing in Mineral Exploration: Local Authorities’ Incentives towards Economic Diversification in Romania

The proper management of exhaustible natural resources requires the responsible management of the revenues generated from the exploitation of these resources and addressing a broad set of political and economic challenges. This paper is intended to demonstrate that understanding the positive effects of natural resource revenues on economic diversification in extractive regions plays a significant role in economic development when considering the contribution of extractive industries. Using national and sectoral data, this paper, on the one hand, examines how mining revenues are managed and spent in relation to the Romanian tax structure and regime and, on the other hand, how the diversification of the local economy can be achieved. The case study presented herein X-rays the complex realities faced by those regions in Romania, where the predominant economic activity is the extractive industry. The results provided by this analysis led us to the conclusion that although the distribution systems related to the extractive revenues give precedence mostly to the producing territories and seek, in particular, to transfer the benefits to the impacted areas, in the case of Romania, we are witnessing a failure in determining local economic diversification.

Natural Capital, Institutional Quality and SDG Progress in Emerging Market and Developing Economies

Whether environmental impacts, natural capital depreciation, and effective governance have impacted progress in emerging market and developing economies (EMDEs) to achieving the 17 Sustainable Development Goals (SDGs) of the UN Agenda 2030 has become a significant policy topic. We determine estimates of the changes in net welfare that indicate progress over 2000–2019 in terms of meeting the 17 SDGs for 99 EMDEs. We compare these estimates with the environmental impacts associated with SDGs 11–15, natural resource depletion as a share of national income, and average institutional quality. Net SDG welfare gains over 2000–2019 were often accompanied by adverse environmental impacts, natural capital depletion, and poor-quality institutions. This is especially the case for low- and lower-middle-income economies. Higher net SDG welfare gains are correlated with reduced losses associated with SDGS 11–15, and larger welfare gains from attaining SDG 1 No Poverty are associated with better governance. These results suggest that long-term progress towards the SDGs in EMDEs hinges on improved management of natural capital and the environment, as well as more effective governance. Three policies can be implemented to achieve these objectives without additional financing or imposing fiscal burdens: fossil fuel subsidy swaps, tropical carbon taxes, and improved management and distribution of resource revenues.

Resource rents, savings behavior, and scenarios of economic development

The paper revisits the nexus between natural resources and economic growth from the lens of development economics. It augments the traditional dual-sector economy model by the assumption that in addition to capitalists, also workers contribute to the capital accumulation through private savings out of their wage income. The proposed differential game theory model of the interaction between the public and the elites identifies two realistic open loop Nash and three Stackelberg scenarios for the management of the commodity driven budget surplus. Based on the conventional transversality conditions, the model detects a progressing decay of social cohesion and institutional quality. It shows that at the early stages of the exploitation of the natural resource riches, both the public and elites enable a rather modernization-friendly scenaros. At the rather advanced stages of the exploitation of natural resources both groups try to maximize their short-term private benefits and by doing so protract or even inhibit the process of economic modernization. The study finds that the savings behavior of the workers has a positive modernization effect. Nevertheless, workers’ savings cannot fully offset the negative modernization effects of the inferior management of natural resource revenues.

Natural Resource Governance and Conflicts in Nigeria

This study investigates the governance of natural resources to promote socio-economic and people-centred development in Nigeria. The paper relied on secondary sources of data, focusing on the three main variables: conflict, politics and power. Nigeria is endowed with abundant natural resources, which accounts for about 65% of total tax revenue, driven mostly by an increase in export earnings from the oil and gas sector. Most resource-related conflicts are implicated by the inequitable distribution of benefits accruing to resources. The State and elite, in alliance with foreign corporations, enjoy the benefits of the exploited resource. Host-communities face the debilitating negative environmental impacts and the discrepancy between indigenous traditional laws and state laws that define ownership of natural resources in a federal but unitary state has led to controversial relations among states in Nigeria. The paper took an extensive look at the politics of natural resource extraction and governance in Nigeria and explored the themes through which the causative relationship between natural resources and conflicts can be differentiated. It noticed the political economy of natural resources as embedded within the broader global power relations. The paper concludes that regulation must be anchored to elements of good governance, especially democracy, rule of law, transparency and accountability, as well as efficient and equitable management of resource revenues.

Natural Resource Governance and Conflict in Nigeria

<i>Background</i>:<i> </i>Nigeria is blessed with abundant natural resources, which accounts for over 65% of her total tax revenue, motivated mostly by an upsurge in export earnings from the oil and gas sector. Most of the resource- based conflicts are caught up by the unfair and inequitable distribution of benefits accruing to resources. The government and some acclaimed elite, in alliance with foreign corporations, enjoy the gains and benefits of the exploited resource. Meanwhile, the host-communities face the devastating and undesirable environmental impacts with discrepancy between indigenous traditional laws and state laws that define ownership of natural resources in a federal structure has led to controversial relations among states in Nigeria. <i>Objectives:</i> The paper took an extensive look at the politics of natural resource governance in Nigeria and explored broadly the themes through which the causative link between natural resources and conflicts can be distinguished. The study further explores the role of good governance of natural resources in promoting socio-economic and people-centred development in Nigeria. <i>Methods: </i>The paper relied solely on secondary sources of data, focusing on the three main variables: conflict, politics and power. <i>Results:</i> The study revealed among others that the political economy of natural resources as embedded within the broader global power relations has not been properly explored by the Nigerian government. <i>Conclusion:</i> The paper therefore concludes that regulation must be attached to reflect on the principles of good governance, especially democracy, rule of law, transparency and accountability, as well as efficient and equitable management and distribution of resource revenues.

Natural Resource Revenue Windfalls and Public Service Spending: A Causal Analysis of Indonesian Local Governments

Natural Resource Revenue Windfalls and Public Service Spending: A Causal Analysis of Indonesian Local Governments

Transferring Resource Revenues into Human Capital in Post-Soviet Countries

Transferring Resource Revenues into Human Capital in Post-Soviet Countries

Environmental Fiscal Reforms through Decentralisation for Sustainable Development and Poverty Eradication

Markets and government planning are providing alternative systems for coordinating people’s consumption of resources. The effectiveness of coordination depends on the capability of each system to signify accurate information about people’s wants and available supplies of resources. And on the incentives each provides for individuals to react to the desire of others [Hayek (1945) and Wills (2007)]. Natural resources generate public revenues and benefits. Its equitable distribution and sustainable production leads to real development and ultimately helped to poverty reduction and alleviation. Therefore, natural resource revenues necessitate distributions that favour the needs of the indigenous poor people and local sustainable development. Productive and high-value natural resources are seldom accessible to all citizens and their benefits are rarely evenly dispersed crosswise peoples and geographically across nations. It is worth mentioning that revenues collected from natural resources have a long history of being mismanaged and misappropriated—with political and economic elite often capturing a large share of the benefits while the nations disenfranchised must often absorb inexplicably large share of the associated social and environmental expenses. These are highly interdependence; a sound environment is crucial to poverty reduction and sustainable growth, particularly in low-income countries [IBRD/World Bank (2005); World Bank (2006a) and Mustafa (2008)].

Invasive blue crabs and small-scale fisheries in the Mediterranean sea: Local ecological knowledge, impacts and future management

The recent expansion of the two invasive Portunidae blue crabs Callinectes sapidus and Portunus segnis has generated great concern in the western Mediterranean basin. Here, we collected perception from artisanal small-scale fishermen on the socio-economic issues associated with this invasion. Professional fishers from France, Italy, and Tunisia were interviewed to survey their perception on: (i) the potential drivers of spatial expansion of blue crabs, (ii) the impact on the small-scale fisheries, and (iii) the management measures expected. The main reported impacts were the damage of fishing nets (median = 4.3), followed by a consequent associated increase in work intensity (median = 3.6) and by physical injuries to fishers (median = 3.1). Fishermen reported to have caught less fish (median = 3.4) in presence of blue crabs, as well fish damaged by blue crabs’ bite (median = 3.8) inducing a decrease in the quality and value of catches (median = 3.5). The negative effects induced a decrease on global revenues (median = 3.6) as well despite the negative impacts of blue crabs on the fishery, the presence of these new species has been generally perceived as positive, being considered as a new revenue resource for some fishermen (median = 2.8). The majority of them (72 %) proposed fishing and marketing as main management measures. Despite the interested expressed for exploitation of this new resource, many questions emerged to promote and develop management strategies.

Finances of the Nation: The Impact of COVID-19 on Provincial and Local Government Finances

In this article, Ayaka Behro and Michael Smart explore the impact of COVID-19 on provincial government finances. While spending rose in all provinces in the 2020-21 fiscal year, so did revenues in many provinces, cushioning the impact on deficits. While grants and income tax revenues rose in many provinces, largely owing to federal policies, consumption tax and natural resource revenues fell sharply. Comparing provinces, higher COVID-19 caseloads were associated with higher health spending and lower consumption tax revenues. These findings suggest that COVID-19 has had a more damaging impact on provincial finances than initial forecasts had suggested.

Stock market resource curse: The moderating role of institutional quality

This study examines the impact of natural resources rents on the stock market and the role of institutional quality in managing resource revenues in shaping the stock market development utilizing data from 1991 to 2019 for G-7 economies. The current study employed the latest econometric techniques to exploit the moderating role of institutional quality in this nexus. The current study applied panel unit root with structural breaks to the envisaged variable. The results confirm the unique order of integration among the variables. Further, the Westerlund Panel cointegration is used that confirmed the long-run relationship among the variables. The long-run elasticities have been identified using the dynamic system GMM. This study found a positive effect of resources rent on the stock market and moderating role of institutional quality in enhancing the stock market resource blessing. Finally, Dumitrescu-Hurlin Causality analysis for possible causation is applied. The results depict that there is bidirectional causality between stock market development and economic growth, and moderating variable. This study recommends that since the stock market and banking system operate differently, a trade-off policy concerning institutional quality is needed to efficiently channel the windfall revenues through the financial system to protect the interest of different stakeholders. With the reinforcement and implementation of the efficient institutional framework, the natural resource revenues can further support stock market development.

Taxing the extractives: Revenue sharing between the state and mining companies in Tanzania and Zambia

The resource curse consists of a contrast between resource richness and poor growth and development patterns. This paper investigates the resource revenue sharing between the state and mining companies in Tanzania and Zambia during the commodity boom period from 2000 to 2013. By using data from the national and sector levels, estimates of relative shares of contribution to value added, export and revenues are examined, together with major company level estimates of average effective tax and net present values. From this the author shows to what extent Tanzania and Zambia achieved an effective government take in the period analysed. The study finds that in both countries there were weaknesses in the design and enforcement of the mining tax regimes that have reduced the government take. Tanzania and Zambia both could have doubled annual mineral revenues from 2008-2013, representing USD 80 and 300 million per year respectively, while maintaining competitive conditions and returns for the mining companies. Major policy recommendations include the need to combine evidence-based tax instruments both in contract and legislation, and to invest and support through the administration as well as politically the role and legitimacy of specialized government enforcement capacities and institutions over time.

Reverse Dutch disease with trade costs: Prospects for agriculture in Africa's oil-rich economies

Reduced oil revenues since 2014 are stimulating tradable sectors in oil-exporting countries. I use an open economy model with internal and external trade costs to investigate the prospects for reverse Dutch disease in African countries with a comparative advantage in agriculture. While falling resource revenues lead factors of production to shift into agriculture, remote farmers can lose when trade costs make agricultural goods behave like non-tradables. Household survey data from Nigeria show a significant agricultural supply response that is correlated with exposure to international markets. Lowering trade costs and boosting agricultural productivity can help offset the lost income from oil.

Do international transparency initiatives substitute for domestic governance?

International institutions affect domestic governance, but their substantial effects primarily depend on member countries’ genuine willingness to comply. This paper explores whether international institutions complement or substitute for domestic institutions. The Extractive Industries Transparency Initiative (EITI) was created for the purpose of complementing domestic institutions in resource-abundant countries that show low levels of transparency. The essential mechanism of the EITI is to provide the public with the information on resource revenues. By enhancing the flow of information on resources, the EITI is expected to improve domestic transparency governance on resource industries. This transparency of information can promote accountability and reduce corruption in resource-rich countries. In contrast, international institutions can substitute domestic institutions in a negative way, leading to reductions in domestic governance quality. By using the instrumental variable estimation to address a selection bias and the survival model to estimate the effect of the EITI membership on domestic transparency governance, this paper finds that the EITI membership has a positive effect on domestic transparency, but there is little spillover effect on institutional reformation.