developing economies-Indonesia and Mexico. It finds that unlike increases in electricity prices, which harm plants' performance …, fuel price hikes result in higher productivity and profits of manufacturing plants. The results of instrumental variable … Indonesian and 1.2 percent for Mexican plants. The evidence suggests that effects are driven by the incentives that fuel price …

"Indonesia's oil revenues and fuel subsidies dominate the nation's economic policy agenda. This paper estimates the … on Indonesia's public finances declines as oil prices rise, because subsidies and other expenditures outgrow oil and gas …

. High dependence of government revenues on oil can contribute to severe recession following an adverse commodity price shock … scenarios demonstrate that a well-designed management rule can successfully insulate the public budget from the oil price cycle …

price crash. The paper also documents the various policies adopted in response to the discoveries and - with the benefit of …