Investor Presentaiton
A different approach to managing resource revenues
In order to overcome domestic structural constraints (such as low technological sophistication, limited
areas of competitive advantage While mitigating economic risks associated with domestic
investments of resource revenues (such as public investment inefficiency, absorptive capacity constraints,
and Dutch disease), the approach in Chang and Lebdioui (2020) is based on the following two features:
Share of resource revenues
100%
80%
60%
40%
20%
0% +
The gradual
scaling-up of
domestic
investments in
real assets
The targeting of
productivity
enhancing assets
for tradable
sectors
to
8
t1
(Short commodity
boom, <5 years)
t2
t3
(Long commodity
boom, >10 years)
Domestic investments in general
and specific capabilities
Savings in financial assets overseasView entire presentation