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

  • Sandrine A. Kablan

    ()

    (ERUDITE, Université de Paris Est Créteil)

  • Josef L. Loening

    ()

    (World Bank)

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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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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  1. Levy, Stephanie, 2006. "Public investment to reverse Dutch disease: the case of Chad," DSGD discussion papers 35, International Food Policy Research Institute (IFPRI).
  2. Katerina Kalcheva & Nienke Oomes, 2007. "Diagnosing Dutch Disease; Does Russia Have the Symptoms?," IMF Working Papers 07/102, International Monetary Fund.
  3. Eugenio Cerutti & Mario Mansilla, 2008. "Bolivia; The Hydrocarbons Boom and the Risk of Dutch Disease," IMF Working Papers 08/154, International Monetary Fund.
  4. 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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