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Measuring the contribution of extractive industries to local development : the case of oil companies in Nigeria

Author

Listed:
  • Diongue Abdou Ka

    (UGB - Université Gaston Berger de Saint-Louis Sénégal)

  • Gaël Giraud

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, ESCP Europe - Ecole Supérieure de Commerce de Paris)

  • Cécile Renouard

    (ESSEC Business School)

Abstract

Extractive industries face two main challenges in terms of CSR and poverty reduction: 1) recognize that societal activity is part of their core business; 2) take part in socio-economic projects that contribute to their stakeholders' empowerment and not only to their living conditions. Based on surveys achieved in Nigeria in 2008, the paper presents two societal performance indices meant to be complementary: the Poverty Exit Index (PEI) and the Relational Capability Index (RCI). We show that, while they have fostered the PEI of the local communities, the development projects of the oil companies had a rather negative impact on their RCI. We then identify key variables that can influence positively the RCI and on which a sensible development policy should focus.

Suggested Citation

  • Diongue Abdou Ka & Gaël Giraud & Cécile Renouard, 2011. "Measuring the contribution of extractive industries to local development : the case of oil companies in Nigeria," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00626247, HAL.
    • Handle: RePEc:hal:cesptp:hal-00626247
    Note: View the original document on HAL open archive server: https://essec.hal.science/hal-00626247
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    development indices; capability approach; relational capability; development; poverty; impact assessment;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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