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An empirical assessment of the Dutch disease channel of the resource curse: the case of Chad

Author

Listed:
  • Sandrine A. Kablan

    (ERUDITE, Université de Paris Est Créteil)

  • Josef L. Loening

    (World Bank)

Abstract

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. In this context, increased public expenditures in tradable sectors present the opportunity to make oil revenues an engine of national development.

Suggested Citation

  • Sandrine A. Kablan & Josef L. Loening, 2012. "An empirical assessment of the Dutch disease channel of the resource curse: the case of Chad," Economics Bulletin, AccessEcon, vol. 32(3), pages 2007-2014.
    • Handle: RePEc:ebl:ecbull:eb-12-00516
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2012/Volume32/EB-12-V32-I3-P194.pdf
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    References listed on IDEAS

    as
    1. 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.
    2. Stephanie Levy, 2007. "Public Investment to Reverse Dutch Disease: The Case of Chad," Journal of African Economies, Centre for the Study of African Economies, vol. 16(3), pages 439-484, June.
    3. repec:zbw:bofitp:2007_007 is not listed on IDEAS
    4. repec:hoo:wpaper:e-92-3 is not listed on IDEAS
    5. Ms. Katerina Kalcheva & Nienke Oomes, 2007. "Diagnosing Dutch Disease: Does Russia Have the Symptoms?," IMF Working Papers 2007/102, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Edouard Mien & Michaël Goujon, 2022. "40 Years of Dutch Disease Literature: Lessons for Developing Countries," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 64(3), pages 351-383, September.
    2. Edouard Mien, 2022. "Impact of Oil Price and Oil Production on Inflation in the CEMAC," Post-Print hal-03790291, HAL.
    3. Mien, Edouard, 2022. "Impact of oil price and oil production on inflation in the CEMAC," Resources Policy, Elsevier, vol. 79(C).

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    More about this item

    Keywords

    Key words: Natural resource curse; Dutch disease; Chad; Structural VAR.;
    All these keywords.

    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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