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Escaping the Dutch Disease: The Role of Public Investment in Niger

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  • Issoufou Soumaila

Abstract

This paper describes the use of a recursive dynamic computable general equilibrium model to the analysis of two investment strategies of natural resources revenue in Niger. Potential impact of education and infrastructure investment on some selected macroeconomic and welfare variables are simulated. The results show that the economy performs better with a low risk of Dutch Disease when the windfall is invested either in education or in infrastructure. Superior results are obtained when the windfall is simultaneously invested in education and infrastructure, which implies a complementary effect between the two investment strategies.

Suggested Citation

  • Issoufou Soumaila, 2015. "Escaping the Dutch Disease: The Role of Public Investment in Niger," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 5(2), pages 333-339.
    • Handle: RePEc:asi:aeafrj:v:5:y:2015:i:2:p:333-339:id:1343
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    File URL: https://archive.aessweb.com/index.php/5002/article/view/1343/1923
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    Cited by:

    1. Simplice A. Asongu & Samba Diop, 2022. "Resource Rents and Economic Growth: Governance and Infrastructure Thresholds," Working Papers 22/072, European Xtramile Centre of African Studies (EXCAS).

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