Is Chad affected by Dutch or Nigerian disease?

Akassi Kablan and Josef Loening

MPRA Paper from University Library of Munich, Germany

Abstract: We examine the effects of the ‘natural resource curse’ on Chad and find little evidence for Dutch disease. Structural vector auto-regression suggests that changes in domestic output and prices are overwhelmingly determined by aggregate demand and supply shocks, and while oil production and high international prices negatively affect agricultural output, the effects are small. Consistent with empirical evidence for neighbouring Cameroon, we observe minimal impact on Chad’s manufacturing sector. We associate our findings with structural underemployment and the inefficient use of existing production factors. In this context, increased public expenditures in tradable sectors present the opportunity to make oil revenues an engine of national development.

Keywords: Natural resource curse; Dutch disease; Chad; Structural VAR (search for similar items in EconPapers)
JEL-codes: E30 E32 E61 O11 O13 (search for similar items in EconPapers)
Date: 2012-06-30, Revised 2012-07-02
New Economics Papers: this item is included in nep-afr, nep-agr and nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Is Chad affected by Dutch or Nigerian disease? (2017)
Journal Article: Is Chad Affected by Dutch or Nigerian Disease? (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:39799

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