Go, Delfin Sia

Development Prospects Group, World Bank
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Development and Growth Economics; Africa Development; Economic Modeling and Tools for Fiscal Analysis; Aid Effectiveness and Management
Development Prospects Group, World Bank
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Last updated July 11, 2023
Delfin Go is Lead Economist in the Development Prospects Group and oversees the economic modeling and information team, which produces forward-looking and long-term scenarios that underpin special reports such as the Global Monitoring Report and the Global Development Horizons.  Delfin was the lead author and task manager of the Global Monitoring Report 2011: Improving the Odds of Achieving the MDGs and the Global Monitoring Report 2010: The Millennium Development Goals After the Crisis. He was formerly Lead Economist in the office of the World Bank’s Africa Region Chief Economist, where he focused on macroeconomic issues, aid effectiveness and management, and conducted Country Policy and Institutional Assessments (CPIA) of African countries. He has also undertaken analytical work on debt issues, tools for fiscal analysis, and macro-micro linkages for probing the distributional consequences and the impact on growth, poverty, and other MDGs of alternative macroeconomic frameworks, external shocks, aid flows, as well as the composition of public expenditure. Previously, he served as the World Bank’s Country Economist and PREM Cluster Leader of Southern Africa (South Africa, Botswana, Lesotho and Namibia) and Zambia. Go first joined the World Bank as a Research Economist at the Development Research Group. Go holds a Ph.D. in Political Economy and Government from Harvard University.  
Citations 11 Scopus

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Now showing 1 - 6 of 6
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    Dutch Disease and Spending Strategies in a Resource-Rich Low-income Country : The Case of Niger
    (World Bank, Washington, DC, 2013-11) Go, Delfin S. ; Robinson, Sherman ; Thierfelder, Karen ; Utz, Robert
    This paper examines spending plans suggested by the recent literature regarding Dutch disease and examines their implications to Niger relative to its expanding mineral sector. The key to the benefits of significant mineral revenue lies with the productivity and supply responses of spending. If significant output gain is ensured, then there is little difference across the spending plans in their effects on real consumption. The overshooting of relative prices of the non-tradable sector or the shrinking share of traded sectors in gross domestic product is also ameliorated with greater supply flexibility. Growth paths of alternative spending strategies differ markedly in timing and pattern when spending does not raise productivity. As a caution against expectations that exaggerate the benefits of mineral revenue under all circumstances, the more aggressive spending plan may result in a boom-bust cycle if fiscal adjustments and debt repayments are necessary for any significant borrowing against future revenue and productivity gains are not realized. Using extractive industries revenue for transfers to households would have a greater effect on poverty reduction in the short and medium term but the long-run gains from investment in human and physical capital are likely to offset the initial lack of pro-poor bias. Different strategies differ significantly with regard to risks and required technical implementation capacity and political capacity to sustain a chosen course of action.
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    Economy-wide and Distributional Impacts of an Oil Price Shock on the South African Economy
    (World Bank, Washington, DC, 2007-09) Essama-Nssah, B. ; Go, Delfin S. ; Kearney, Marna ; Korman, Vijdan ; Robinson, Sherman ; Thierfelder, Karen
    As crude oil prices reach new highs, there is renewed concern about how external shocks will affect growth and poverty in developing countries. This paper describes a macro-micro framework for examining the structural and distributional consequences of a significant external shock-an increase in the world price of oil-on the South African economy. The authors merge results from a highly disaggregative computable general equilibrium model and a micro-simulation analysis of earnings and occupational choice based on socio-demographic characteristics of the household. The model provides changes in employment, wages, and prices that are used in the micro-simulation. The analysis finds that a 125 percent increase in the price of crude oil and refined petroleum reduces employment and GDP by approximately 2 percent, and reduces household consumption by approximately 7 percent. The oil price shock tends to increase the disparity between rich and poor. The adverse impact of the oil price shock is felt by the poorer segment of the formal labor market in the form of declining wages and increased unemployment. Unemployment hits mostly low and medium-skilled workers in the services sector. High-skilled households, on average, gain from the oil price shock. Their income rises and their spending basket is less skewed toward food and other goods that are most affected by changes in oil prices.
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    Budget Rules and Resource Booms : A Dynamic Stochastic General Equilibrium Analysis
    (World Bank Group, Washington, DC, 2014-07) Devarajan, Shantayanan ; Dissou, Yazid ; Go, Delfin S. ; Robinson, Sherman
    This paper develops a dynamic stochastic general equilibrium model to analyze and derive simple budget rules in the face of volatile public revenue from natural resources in a low-income country like Niger. The simulation results suggest three policy lessons or rules of thumb. When a resource price change is positive and temporary, the best strategy is to save the revenue windfall in a sovereign fund, and use the interest income from the fund to raise citizens' consumption over time. This strategy is preferred to investing in public capital domestically, even when private investment benefits from an enhanced public capital stock. Domestic investment raises the prices of domestic goods, leaving less money for government to transfer to households; public investment is not 100 percent effective in raising output. In the presence of a negative temporary resource price change, however, the best strategy is to cut public investment. This strategy dominates other methods, such as trimming government transfers to households, which reduces consumption directly, or borrowing, which incurs an interest premium as debt rises. In the presence of persistent (positive and negative) shocks, the best strategy is a mix of public investment and saving abroad in a balanced regime that provides a natural insurance against both types of price shocks. The combination of interest income from the sovereign fund, transfers to households, and output growth brought about by public investment provides the best protective mechanism to smooth consumption over time in response to changing resource prices.
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    Global Migration Revisited: Short-Term Pains, Long-Term Gains, and the Potential of South-South Migration
    (World Bank, Washington, DC, 2016-04) Ahmed, S. Amer ; Go, Delfin S. ; Willenbockel, Dirk
    This paper re-examines the development implications of international migration focusing on two issues: how the costs and benefits of migration change over time, and the significance of South-South migration for development. First, the analysis finds that although greater migration could push down the wages of native workers of advanced countries in the short run, these wages eventually recover. This pattern would be mostly caused by the beneficial effect of additional labor on the real returns on capital and fostering faster capital formation. Additional South-North migration could favor capital income recipients and reduces labor income in host regions in the short run. In contrast, in sending countries, capital owners could experience lower incomes while wages rise. Globally, the welfare gains of new migrants could be expected to exceed the losses of old migrants by a wide margin. The remaining natives in sending countries could enjoy a net increase in remittances as well as an increase in labor income, although income from capital might decline. Second, in a hypothetical scenario with lower South-South migration, the implied losses of remittance income could lead to substantially lower welfare in developing countries. Although the wage differentials among developing countries tend to be smaller relative to their wage differentials with high-income countries, South-South migrants make substantial contributions to remittances.
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    Africa at a Turning Point? : Growth, Aid, and External Shocks
    (Washington, DC : World Bank, 2008) Go, Delfin S. ; Page, John
    This book is a collection of essays that seeks to answer three interrelated sets of questions about Africa's recent growth recovery. The first set of essays addresses questions about the drivers and durability of Africa's growth. How different is current economic performance compared to Africa's long history of boom-bust cycles? Have African countries learned to avoid past mistakes and pursued the right policies? How much of the current performance depends on good luck such as favorable commodity prices or the recovery of external assistance and how much depends on hard-won economic policy reforms. A second set of essays looks at the role of donor flows. External assistance plays a larger role in Africa's growth story than in any other part of the developing world. As a result, the economic management of external assistance is a major public policy challenge, and donor behavior is a significant source of external risk. The third set of essays looks at questions arising from commodity price shocks especially from changes in the price of oil. Relative to factors such as policy failures, conflicts, and natural disasters, how important are commodity price shocks in explaining output variability in African countries? Compared to the oil price shocks in the 1970s, why have recent higher oil prices apparently had less impact on Africa's growth? Oil is also now an important source of revenue for several oil exporting countries in Africa; what are the economic challenges faced by those countries? How should one analyze the macroeconomic and distributional impact of external and oil price shocks? As the essays in this volume show, laying the policy and institutional basis for longer-term growth, managing volatile commodity prices and aid flows, and turning growth in average incomes into growth in all incomes remain formidable but manageable challenges if Africa is to reach its turning point.
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    Aid, Growth, and Real Exchange Rate Dynamics
    (World Bank, Washington, DC, 2008-01) Devarajan, Shantayanan ; Go, Delfin S. ; Page, John ; Robinson, Sherman ; Thierfelder, Karen
    Devarajan, Go, Page, Robinson, and Thierfelder argued that if aid is about the future and recipients are able to plan consumption and investment decisions optimally over time, then the potential problem of an aid-induced appreciation of the real exchange rate (Dutch disease) does not occur. In their paper, "Aid, Growth and Real Exchange Rate Dynamics," this key result is derived without requiring extreme assumptions or additional productivity story. The economic framework is a standard neoclassical growth model, based on the familiar Salter-Swan characterization of an open economy, with full dynamic savings and investment decisions. It does require that the model is fully dynamic in both savings and investment decisions. An important assumption is that aid should be predictable for intertemporal smoothing to take place. If aid volatility forces recipients to be constrained and myopic, Dutch disease problems become an issue.