This paper estimates the government spending multiplier for natural resource-rich low-income countries (LICs). Kraay … government spending multiplier. Our estimates suggest that in the short run, the government spending multiplier is around 0.7 for …

sample of 102 developing countries. The one-year government spending multiplier is reasonably-precisely estimated to be …

government spending and pushing up the output multiplier. The same external financing, however, tends to appreciate the real … exchange rate and as a result, traded output can respond quite negatively, reducing the overall output multiplier. Although … dampen the output multiplier. Since LICs often import substantial amounts of goods, public investment may not be as effective …