01903cas a2200253 a 4500 AALejournalIMF006722 230101c9999 xx r poo 0 0eng d 5.00 USD 9781455205400 1018-5941 BD-DhAAL BD-DhAAL Bruckner, Markus. Commodity Windfalls, Polarization, and Net Foreign Assets : Panel Data Evidenceon the Voracity Effect / Markus Bruckner, Rabah Arezki. Washington, D.C. : International Monetary Fund, 2010. 1 online resource (24 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines the effect that windfalls from international commodity price booms have on net foreign assets in a panel of 145 countries during the period 1970-2007. The main finding is that windfalls from international commodity price booms lead to a significant increase in net foreign assets, but only in countries that are homogeneous. In polarized countries, net foreign assets significantly decreased. To explain this asymmetry, the paper shows that in polarized countries commodity windfalls lead to large increases in government spending, political corruption, and the risk of expropriation, with no overall effect on GDP per capita growth. The paper's findings are consistent with theoretical models of the current account that have a built-in voracity effect. Mode of access: Internet Arezki, Rabah. IMF Working Papers; Working Paper ; No. 2010/209 Full text available on IMF http://elibrary.imf.org/view/journals/001/2010/209/001.2010.issue-209-en.xml IMF e-Library