Is Chad affected by Dutch or Nigerian disease?
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. We associate our findings with structural underemployment and the inefficient use of existing production factors. In this context, increased public expenditures in tradable sectors present the opportunity to make oil revenues an engine of national development.
|Date of creation:||30 Jun 2012|
|Date of revision:||02 Jul 2012|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Corden, W Max & Neary, J Peter, 1982. "Booming Sector and De-Industrialisation in a Small Open Economy," Economic Journal, Royal Economic Society, vol. 92(368), pages 825-48, December.
- Eugenio M Cerutti & Mario Mansilla, 2008. "Bolivia; The Hydrocarbons Boom and the Risk of Dutch Disease," IMF Working Papers 08/154, International Monetary Fund.
- Frankel, Jeffrey, 2010.
"The Natural Resource Curse: A Survey,"
Working Paper Series
rwp10-005, Harvard University, John F. Kennedy School of Government.
- Rabah Arezki & Markus Bruckner, 2010.
"Resource Windfalls and Emerging Market Sovereign Bond Spreads; The Role of Political Institutions,"
IMF Working Papers
10/179, International Monetary Fund.
- Rabah Arezki & Markus Brückner, 2012. "Resource Windfalls and Emerging Market Sovereign Bond Spreads: The Role of Political Institutions," World Bank Economic Review, World Bank Group, vol. 26(1), pages 78-99.
- Rabah Arezki & Markus Bruckner, 2011. "Resource Windfalls and Emerging Market Sovereign Bond Spreads: The Role of Political Institutions," School of Economics Working Papers 2011-08, University of Adelaide, School of Economics.
- Kiminori Matsuyama, 1990.
"Agricultural Productivity, Comparative Advantage, and Economic Growth,"
934, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Matsuyama, Kiminori, 1992. "Agricultural productivity, comparative advantage, and economic growth," Journal of Economic Theory, Elsevier, vol. 58(2), pages 317-334, December.
- Kiminori Matsuyama, 1991. "Agricultural Productivity, Comparative Advantage and Economic Growth," NBER Working Papers 3606, National Bureau of Economic Research, Inc.
- Corden, W M, 1984. "Booming Sector and Dutch Disease Economics: Survey and Consolidation," Oxford Economic Papers, Oxford University Press, vol. 36(3), pages 359-80, November.
- Bjornland, Hilde Christiane, 1998. "The Economic Effects of North Sea Oil on the Manufacturing Sector," Scottish Journal of Political Economy, Scottish Economic Society, vol. 45(5), pages 553-85, November.
- repec:hoo:wpaper:e-92-3 is not listed on IDEAS
- Milan Brahmbhatt & Otaviano Canuto, 2010.
"Natural Resources and Development Strategy after the Crisis,"
World Bank Other Operational Studies
11097, The World Bank.
- Brahmbhatt, Milan & Canuto, Otaviano, 2010. "Natural Resources and Development Strategy after the Crisis," World Bank - Economic Premise, The World Bank, issue 1, pages 1-7, February.
- Milan Brahmbhatt & Otaviano Canuto, 2010. "Natural Resources and Development Strategy after the Crisis," World Bank Other Operational Studies 10212, The World Bank.
- Milan Brahmbhatt & Otaviano Canuto & Ekaterina Vostroknutova, 2010.
"Dealing with Dutch Disease,"
World Bank Other Operational Studies
10174, The World Bank.
- 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.
- Levy, Stephanie, 2006. "Public investment to reverse Dutch disease: the case of Chad," DSGD discussion papers 35, International Food Policy Research Institute (IFPRI).
- Torvik, Ragnar, 2002. "Natural resources, rent seeking and welfare," Journal of Development Economics, Elsevier, vol. 67(2), pages 455-470, April.
- 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.
- Drelichman, Mauricio, 2005. "The curse of Moctezuma: American silver and the Dutch disease," Explorations in Economic History, Elsevier, vol. 42(3), pages 349-380, July.
- Oomes, Nienke & Kalcheva, Katerina, 2007. "Diagnosing Dutch disease : Does Russia have the symptoms?," BOFIT Discussion Papers 7/2007, Bank of Finland, Institute for Economies in Transition.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:39799. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.