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An empirical assessment of the Dutch disease channel of the resource curse: the case of Chad

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  • Sandrine A. Kablan

    ()
    (ERUDITE, Université de Paris Est Créteil)

  • Josef L. Loening

    ()
    (World Bank)

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. In this context, increased public expenditures in tradable sectors present the opportunity to make oil revenues an engine of national development.

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File URL: http://www.accessecon.com/Pubs/EB/2012/Volume32/EB-12-V32-I3-P194.pdf
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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 32 (2012)
Issue (Month): 3 ()
Pages: 2007-2014

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Handle: RePEc:ebl:ecbull:eb-12-00516

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Keywords: Key words: Natural resource curse; Dutch disease; Chad; Structural VAR.;

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  1. Eugenio Cerutti & Mario Mansilla, 2008. "Bolivia," IMF Working Papers 08/154, International Monetary Fund.
  2. Stephanie Levy, 2007. "Public Investment to Reverse Dutch Disease: The Case of Chad," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 16(3), pages 439-484, June.
  3. repec:fth:stanho:e-92-3 is not listed on IDEAS
  4. Oomes , Nienke & Kalcheva, Katerina, 2007. "Diagnosing Dutch disease: Does Russia have the symptoms?," BOFIT Discussion Papers 7/2007, Bank of Finland, Institute for Economies in Transition.
  5. Benjamin, Nancy C. & Devarajan, Shantayanan & Weiner, Robert J., 1989. "The Dutch disease in a developing country : Oil reserves in Cameroon," Journal of Development Economics, Elsevier, vol. 30(1), pages 71-92, January.
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