Is Chad Affected by Dutch or Nigerian Disease?
Journal Title: Journal of Empirical Economics - Year 2014, Vol 3, Issue 5
Abstract
In this paper, we first analyse if Chad‟s economy presents some features that support the existence of the natural resource curse, such as volatility in government resources, poor institutions, recurrent tensions, and mismanagement of oil resources. Then, deepening our analysis, we use a structural Vector auto-regressive model to show whether or not Chad is affected by Dutch disease. Our results suggest that changes in domestic output and prices are determined by aggregate demand and supply shocks. However, while oil production and high international prices negatively affect agricultural output, the effects are small. 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.
Authors and Affiliations
Sandrine Kablan, Josef Loening, Yasuhiro Tanaka
Keywords
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- EP ID EP27380
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