Budina, NinaPang, Gaobovan Wijnbergen, Sweder2012-06-072012-06-072007-06https://hdl.handle.net/10986/7418Nigeria's oil boom has not brought an end to perennial stagnation in the non-oil economy. Is this the unavoidable consequence of the resource boom or have misguided policies contributed? This paper indicates that the extreme volatility of expenditure rather than Dutch Disease effects are behind the disappointing non-oil growth record. Fiscal policies failed to smooth highly volatile oil income; on the contrary government expenditure was more volatile than oil income. The authors provide econometric evidence showing that volatility of expenditure was increased by debt overhang problems. Moreover, they also find evidence of voracity effects that exacerbated expenditure volatility prior to 1984.CC BY 3.0 IGOACCESS TO CAPITAL MARKETSADVERSE IMPACTAGGREGATE EXPENDITUREAGRICULTUREALLOCATIONANNUAL AVERAGE RATEBENCHMARKBENCHMARKSBLACK MARKETBUDGET PROCESSCAPITAL ACCUMULATIONCAPITAL EXPENDITURECAPITAL INVESTMENTCAPITAL MARKETCAPITAL SPENDINGCASH FLOWCENTRAL BANKCOMMODITY PRICESCONSUMERSCOST RECOVERYDEBTDEBT BURDENDEBT CRISISDEBT RELIEFDEBT SERVICEDEFICIT FINANCINGDEVELOPMENT ECONOMICSDOMESTIC BORROWINGDOMESTIC DEBTECONOMETRICSECONOMIC GROWTHECONOMIC OUTLOOKECONOMIC PERFORMANCEECONOMIC STRUCTUREENERGY PRICESEXCHANGE RATE POLICYEXCHANGE RATESEXCHANGE RESERVESEXPENDITUREEXPENDITURE CUTSEXPENDITURE GROWTHEXPENDITURE PLANSEXPENDITURESEXPORTSEXTERNAL BORROWINGEXTERNAL DEBTEXTERNAL LOANSFACTOR PRICESFINANCIAL LIMITSFINANCIAL MARKETSFINANCIAL SECTORFISCAL BALANCEFISCAL DEFICITSFISCAL DISCIPLINEFISCAL POLICIESFISCAL POLICYFISCAL REFORMFISCAL REFORMSFISCAL REVENUEFISCAL RULEFISCAL SAVINGSFOREIGN EXCHANGEFOREIGN EXCHANGE RESERVESFOREIGN RESERVESGDPGDP PER CAPITAGOVERNMENT CONSUMPTIONGOVERNMENT EXPENDITUREGOVERNMENT EXPENDITURESGOVERNMENT REVENUESGOVERNMENT SPENDINGGROSS PUBLIC DEBTINCOMEINDUSTRIALIZATIONINFLATIONINTEREST RATESLICENSESMACROECONOMIC INSTABILITYMACROECONOMIC MANAGEMENTMACROECONOMIC POLICIESMARKET ACCESSMARKET FAILURESMARKET INFORMATIONMEDIUM TERM EXPENDITUREMEDIUM TERM EXPENDITURE FRAMEWORKMINISTRY OF FINANCENATURAL RESOURCESNET PUBLIC DEBTNOMINAL EXCHANGE RATEOIL PRICESOIL WINDFALLSOVERVALUATIONPER CAPITA INCOMEPERMANENT INCOMEPRICE INCREASESPRICE VOLATILITYPRODUCTIVITY GROWTHPUBLICPUBLIC BORROWINGPUBLIC CAPITALPUBLIC DEBTPUBLIC EXPENDITUREPUBLIC INVESTMENTPUBLIC SECTORPUBLIC SECTOR DEBTPUBLIC SECTOR EMPLOYMENTPUBLIC SPENDINGREAL EXCHANGE RATERECURRENT EXPENDITUREREFORM AGENDAREFORM EFFORTSREGULATORY AUTHORITYRELATIVE PRICESREVENUE MANAGEMENTRISK PREMIUMSOCIAL INDICATORSSPREADSTATE EXPENDITURESTATE GOVERNMENTSSUB-SAHARAN AFRICASURPLUSSURPLUSESTAXTOTAL EXPENDITURETOTAL PUBLIC EXPENDITURETOTAL REVENUETOTAL SPENDINGTRANSPARENCYUNEMPLOYMENTUNEMPLOYMENT RATEVOLATILITYWAGESWEALTHWorld Bank10.1596/1813-9450-4256