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Subnational government budgets and resource revenues in Indonesia: indications of resource blessings?

Abstract:

We examine the economic consequences of resource extraction and the associ-ated revenue windfalls on subnational government revenues and spending patterns. Making use of Indonesia's fiscal sharing rules and an offshore oil and gas produc-tion instrument, we find a positive impact of resource revenues on the center-local balancing funds including the general allocation fund, despite the latters' fiscal re-balancing purposes. Fiscal windfalls from resource extraction increase public sector spen...

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Publication status:
Published

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Publisher:
University of Oxford Publisher's website
Series:
OxCarre Papers
Publication date:
2019-12-18
Paper number:
222

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