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Natural Resource and Local Communities: Evidence from Ghana’s offshore oil and gas

Author

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  • Patricia Agyapong

Abstract

In 2007, Kosmos Energy and Tullow Oil found Ghana’s most significant column of high-grade offshore oil and gas. In this paper, I use geocoded household data to examine the socio-economic effects of this oil and gas discovery on the local communities. I conduct two quasi-experimental analysis and find that oil and gas discovery increased real income for households close to the fields, with the benefits being larger for households in districts with a high proportion of skilled workers and limited to non-poor districts. However, there is no apparent effect on employment, total consumption expenditure and poverty.

Suggested Citation

  • Patricia Agyapong, 2026. "Natural Resource and Local Communities: Evidence from Ghana’s offshore oil and gas," CSAE Working Paper Series 2026-02, Centre for the Study of African Economies, University of Oxford.
    • Handle: RePEc:csa:wpaper:2026-02
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    File URL: https://ora.ox.ac.uk/objects/uuid:c28d08e6-8728-40e8-96d1-c74c30c5a5ec
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    JEL classification:

    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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