El Serafy User costs and their implications for macroeconomic policy in Africa's mineral rich economies

dc.contributor.advisorLeiman, Anthony
dc.contributor.authorMoussi, Sopp Louis Romain
dc.date.accessioned2019-02-22T07:30:38Z
dc.date.available2019-02-22T07:30:38Z
dc.date.issued2018
dc.date.updated2019-02-22T05:59:57Z
dc.description.abstractMany of Africa’s economies are mineral based. Their sustainability and their macroeconomic vulnerability to market fluctuations are accordingly matters of direct concern. This thesis asks how much of the proceeds of mining in such countries can be safely spent each year. Using El Serafy’s approach to the ‘proper’ definition of National Income, it recomputes Net Domestic Product in 11 mineral-based African economies and tests for their macroeconomic sustainability. The study finds a disturbingly poor level of sustainability in several of them; with aggregate expenditures in excess of the levels posited under efficient resource rent management given the El Serafy User cost approach. The study estimates the budget deficit and national debt as a proportion of net national product adjusted for mineral resource depletion in each country and evaluates the outcome by comparison with standard ‘rules of thumb’ concerning ‘acceptable’ fiscal deficits and national debt levels. The outcome reveals that using GDP as an anchor as opposed to an ‘appropriate’ measure that adjust for mineral resource depletion by policy-makers may lead to the implementation of sub-optimal economic policies which are detrimental for sustainable income growth and development. The findings from the study therefore highlight the need for more efficient resource management as well as the development of a ’properly defined‘ national income which corrects for resource depletion to inform sustainable fiscal policy.
dc.identifier.apacitationMoussi, S. L. R. (2018). <i>El Serafy User costs and their implications for macroeconomic policy in Africa's mineral rich economies</i>. (). University of Cape Town ,Faculty of Commerce ,School of Economics. Retrieved from http://hdl.handle.net/11427/29720en_ZA
dc.identifier.chicagocitationMoussi, Sopp Louis Romain. <i>"El Serafy User costs and their implications for macroeconomic policy in Africa's mineral rich economies."</i> ., University of Cape Town ,Faculty of Commerce ,School of Economics, 2018. http://hdl.handle.net/11427/29720en_ZA
dc.identifier.citationMoussi, S. 2018. El Serafy User costs and their implications for macroeconomic policy in Africa's mineral rich economies. University of Cape Town.en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Moussi, Sopp Louis Romain AB - Many of Africa’s economies are mineral based. Their sustainability and their macroeconomic vulnerability to market fluctuations are accordingly matters of direct concern. This thesis asks how much of the proceeds of mining in such countries can be safely spent each year. Using El Serafy’s approach to the ‘proper’ definition of National Income, it recomputes Net Domestic Product in 11 mineral-based African economies and tests for their macroeconomic sustainability. The study finds a disturbingly poor level of sustainability in several of them; with aggregate expenditures in excess of the levels posited under efficient resource rent management given the El Serafy User cost approach. The study estimates the budget deficit and national debt as a proportion of net national product adjusted for mineral resource depletion in each country and evaluates the outcome by comparison with standard ‘rules of thumb’ concerning ‘acceptable’ fiscal deficits and national debt levels. The outcome reveals that using GDP as an anchor as opposed to an ‘appropriate’ measure that adjust for mineral resource depletion by policy-makers may lead to the implementation of sub-optimal economic policies which are detrimental for sustainable income growth and development. The findings from the study therefore highlight the need for more efficient resource management as well as the development of a ’properly defined‘ national income which corrects for resource depletion to inform sustainable fiscal policy. DA - 2018 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2018 T1 - El Serafy User costs and their implications for macroeconomic policy in Africa's mineral rich economies TI - El Serafy User costs and their implications for macroeconomic policy in Africa's mineral rich economies UR - http://hdl.handle.net/11427/29720 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/29720
dc.identifier.vancouvercitationMoussi SLR. El Serafy User costs and their implications for macroeconomic policy in Africa's mineral rich economies. []. University of Cape Town ,Faculty of Commerce ,School of Economics, 2018 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/29720en_ZA
dc.language.isoeng
dc.publisher.departmentSchool of Economics
dc.publisher.facultyFaculty of Commerce
dc.publisher.institutionUniversity of Cape Town
dc.subject.othernational income, El-Serafy User cost, sustainability, mineral resources
dc.titleEl Serafy User costs and their implications for macroeconomic policy in Africa's mineral rich economies
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationnameMCom
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