ABSTRACT<\/strong><\/p>\nOver the past 3 decades, policy prescription on fiscal management of resource
\nrevenue associated with the \u201cnatural resource curse\u201d literature has progressed from the
\ninitial consensus of saving the entirety of resource windfall abroad (for consumption
\nsmoothing and precautionary buffer) to allocating some fraction domestically to
\nfinance infrastructure investments so as to address persistent infrastructure gaps.
\nHowever, in practice, resource rents spent domestically are often parked in entities
\nknown as sovereign funds, which finance state-owned enterprises (SOEs) operating
\nin the domestic market. We develop a DSGE model in which the government of a
\nresource-rich economy allocates its resource revenue between a Resource Fund
\nabroad and investments in SOEs. Despite being less productive efficient, SOEs\u2019
\noperation benefits from scale economies tied to the resource sector: its profitability
\nis therefore procyclical to resource price shocks. The model is Bayesian-estimated to
\nMalaysia, with the results suggesting a business cycle heavily influenced by resource
\nshocks. We solve numerically for an optimal resource revenue allocation between
\nSOE investments and Resource Fund, and find the present allocation to SOEs in
\nMalaysia to be higher than the socially optimal level.<\/p>\n
BIODATA<\/strong><\/p>\nDr. King Yoong Lim holds a PhD Economics (awarded with the prestigious President\u2019s
\nDoctoral Scholar medal) from the University of Manchester. He is currently a Lecturer in
\nEconomics with the Nottingham Business School, Nottingham Trent University. A three-time
\nSTC Consultant with the World Bank, he contributed to Malaysia\u2019s Capital Market Masterplan
\n2, National Innovation Strategy (and its associated GLC Innovation Transformation
\nProgramme), and recently led the redevelopment of Kenya Revenue Agency\u2019s revenue
\nforecasting framework. His wide range of research interests includes applied development
\neconomics, economic growth, and industrial transformation & innovation strategies. To
\ndate, he has published in Macroeconomic Dynamics, Journal of Macroeconomics, Economic
\nModelling, New Zealand Economic Papers, and Singapore Economic Review. He is also
\nthe co-author of the policy-centric book, \u201cCan Malaysia Achieve Innovation-led Growth?\u201d
\npublished by Khazanah Nasional in 2013.<\/p>\n","protected":false},"excerpt":{"rendered":"
OPTIMAL FISCAL MANAGEMENT OF RESOURCE WEALTH IN AN ECONOMY WITH STATE-OWNED ENTERPRISES: A DSGE ANALYSIS Date: 26 July 2019 (Friday) Time: 10.00am – 12.00pm Venue: …<\/a><\/p>\n","protected":false},"author":1,"featured_media":1325,"comment_status":"open","ping_status":"closed","template":"","tags":[],"news-category":[],"class_list":["post-5304","news","type-news","status-publish","has-post-thumbnail","hentry","newscat-news","newscat-seminar"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.ukm.my\/ikmas\/wp-json\/wp\/v2\/news\/5304","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ukm.my\/ikmas\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.ukm.my\/ikmas\/wp-json\/wp\/v2\/types\/news"}],"author":[{"embeddable":true,"href":"https:\/\/www.ukm.my\/ikmas\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ukm.my\/ikmas\/wp-json\/wp\/v2\/comments?post=5304"}],"version-history":[{"count":3,"href":"https:\/\/www.ukm.my\/ikmas\/wp-json\/wp\/v2\/news\/5304\/revisions"}],"predecessor-version":[{"id":5308,"href":"https:\/\/www.ukm.my\/ikmas\/wp-json\/wp\/v2\/news\/5304\/revisions\/5308"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ukm.my\/ikmas\/wp-json\/wp\/v2\/media\/1325"}],"wp:attachment":[{"href":"https:\/\/www.ukm.my\/ikmas\/wp-json\/wp\/v2\/media?parent=5304"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ukm.my\/ikmas\/wp-json\/wp\/v2\/tags?post=5304"},{"taxonomy":"news-category","embeddable":true,"href":"https:\/\/www.ukm.my\/ikmas\/wp-json\/wp\/v2\/news-category?post=5304"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}