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Measuring the contribution of extractive industries to local development : the case of oil companies in Nigeria

Author

Listed:
  • Kâ Diongue, Abdou

    (Saint Louis University, Senegal)

  • Giraud, Gael

    (CNRS, Paris School of Economics, ESCP-Europe)

  • Renouard, Cécile

    (ESSEC Business School)

Abstract
Extractive industries face two main challenges in terms of CSR and poverty reduction: 1) recognize that societal activity is part of their core business; 2) take part in socio-economic projects that contribute to their stakeholders' empowerment and not only to their living conditions. Based on surveys achieved in Nigeria in 2008, the paper presents two societal performance indices meant to be complementary: the Poverty Exit Index (PEI) and the Relational Capability Index (RCI). We show that, while they have fostered the PEI of the local communities, the development projects of the oil companies had a rather negative impact on their RCI. We then identify key variables that can influence positively the RCI and on which a sensible development policy should focus.

Suggested Citation

  • Kâ Diongue, Abdou & Giraud, Gael & Renouard, Cécile, 2011. "Measuring the contribution of extractive industries to local development : the case of oil companies in Nigeria," ESSEC Working Papers WP1109, ESSEC Research Center, ESSEC Business School.
    • Handle: RePEc:ebg:essewp:dr-11009
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    development indices; capability approach; relational capability; development; poverty; impact assessment;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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