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The Oil Nouveau-Riche and Arms Imports [electronic resource] / Pierre-Louis Vezina.

Author/Creator:
Vezina, Pierre-Louis.
Publication:
Washington, D.C. : The World Bank, 2020.
Format/Description:
Government document
Book
1 online resource (35 p.)
Series:
Policy research working papers
World Bank e-Library
Status/Location:
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Other Title:
World Bank working papers.
Local subjects:
Arms Trade. (search)
Commodities. (search)
Conflict and Development. (search)
Economic Policy, Institutions and Governance. (search)
Energy. (search)
Giant Discoveries. (search)
Macroeconomics and Economic Growth. (search)
New Wealth. (search)
Oil and Gas. (search)
Oil and Gas Exploration. (search)
Oil and Gas Revenue. (search)
Oil Exporters. (search)
Oil Price. (search)
Oil-Importing Countries. (search)
Resource Allocation. (search)
Resource Curse. (search)
Squandered Wealth. (search)
Summary:
Countries that strike it rich when exploring for oil and gas often fail to see growth materialize. This paper shows that one way things can get messy is via squandering new wealth, based on future resource revenues, on arms imports. In the five years following a giant oil or gas discovery, arms imports increase by 25 percent. The effect is even larger, at 51 percent, when the price of oil is as high as USD 80 per barrel. These estimates can be interpreted causally as the timing of giant oil discoveries is unpredictable due to the uncertain nature of exploration.
Other format:
Print Version: Vezina, Pierre-Louis The Oil Nouveau-Riche and Arms Imports
Publisher Number:
10.1596/1813-9450-9374
Access Restriction:
Restricted for use by site license.