Mining Revenues And Inclusive Development In Guinea
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Mining Revenues and Inclusive Development in Guinea
Author: Alejandro Badel
language: en
Publisher: International Monetary Fund
Release Date: 2023-04-29
What are the potential benefits of increasing the taxation of a foreign extractive sector? This paper applies this question to the case of Guinea by using a multi-sector macro-inequality model with heterogeneous agents. We quantify the long-run equilibrium impact of additional taxation when the proceeds are invested in human capital, inclusive infrastructure, and social transfers. Our analysis focuses on the response of GDP, labor formalization, poverty rates, Gini coefficients, rural/urban inequality and sectoral reallocation. The three forms of investment are complementary. Infrastructure investments favor formal production in the urban area while growth and government transfers boost the demand for food. These effects help support the rate of return to education, protecting job formalization through higher wages and prices of informal goods, as the education policy boosts labor supply in rural and urban areas.
Guinea
Author: International Monetary Fund. African Dept.
language: en
Publisher: International Monetary Fund
Release Date: 2024-05-17
Guinea: Selected Issues
Guinea: Selected Issues
Author: International Monetary Fund. African Dept.
language: en
Publisher: International Monetary Fund
Release Date: 2021-07-06
Selected Issues