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

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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

  • Abdou Kâ Diongue & Gaël Giraud & Cécile Renouard, 2011. "Measuring the contribution of extractive industries to local development: the case of oil companies in Nigeria," Documents de travail du Centre d'Economie de la Sorbonne 11043, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    • Handle: RePEc:mse:cesdoc:11043
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    1. Cécile Renouard & Gaël Giraud, 2009. "Relational Capability : An Indicator of Collective Empowerment," Post-Print hal-00551842, HAL.
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    7. Uwafiokun Idemudia, 2009. "Oil Extraction and Poverty Reduction in the Niger Delta: A Critical Examination of Partnership Initiatives," Journal of Business Ethics, Springer, vol. 90(1), pages 91-116, May.
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    Keywords

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    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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