Managing resource revenues in oil-rich countries

This thesis investigates the management of natural resource revenues, particularly focusing on oil, in developing countries and its impact on government expenditures across various sectors. Given the complexities of the "resource curse" and economic development, this study employs a robust empirical analysis using a panel dataset from 47 countries over the period from 2009 to 2021. The study examines how resource revenues influence spending in health, education, and military sectors, contingent upon governance quality and economic conditions. The findings reveal that higher oil revenues correlate with increased public expenditure, particularly in countries with robust governance structures. Case studies of Mexico and Kazakhstan provide comparative insights into different approaches to managing oil wealth and their outcomes. The research underscores the importance of economic diversification, stabilization mechanisms, and strategic investments in human capital for achieving sustainable development. Policy recommendations are provided to guide resource-rich countries in optimizing their natural resource revenues to foster long-term economic growth.