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

Author

Listed:
  • 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.

Suggested Citation

  • Sandrine A. Kablan & Josef L. Loening, 2012. "An empirical assessment of the Dutch disease channel of the resource curse: the case of Chad," Economics Bulletin, AccessEcon, vol. 32(3), pages 2007-2014.
  • Handle: RePEc:ebl:ecbull:eb-12-00516
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2012/Volume32/EB-12-V32-I3-P194.pdf
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    References listed on IDEAS

    as
    1. 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.
    2. Eugenio M Cerutti & Mario Mansilla, 2008. "Bolivia; The Hydrocarbons Boom and the Risk of Dutch Disease," IMF Working Papers 08/154, International Monetary Fund.
    3. repec:hoo:wpaper:e-92-3 is not listed on IDEAS
    4. 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.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

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

    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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