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Cross-County Poverty Comparisons In Chad: The Impact Of The Oil Revenues Redistribution Policy

Author

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  • Gadom DJAL-GADOM

    (University of N’Djamena, Chad)

  • Armand MBOUTCHOUANG KOUNTCHOU

    (University of Yaoundé II, Cameroon)

Abstract

This paper analyses the determinants of cross-county poverty disparities in Chad within the context of oil exploitation. Data is provided from the last Chad Household Consumption and Informal Sector Survey (ECOSIT 3) and from the College for Control and Monitoring of Oil Revenues (CCSRP). The incidence of poverty is separately estimated for two groups of counties, according to the amount of oil revenues received with respect to their demographic weights. The difference between the poverty estimates is decomposed into characteristics and coefficients effects following the generalization of Oaxaca-type decomposition for poverty analysis. Results highlight the existence of a highly significant poverty disparity between the two groups of counties. The county-group with a relatively low share of oil revenues has a higher poverty rate than the other group. The effect of county characteristics explains 78.3% of this difference in poverty, while 21.7% is explained by the return effect due to the differential impact of the characteristics over counties. It is expected that to better promote economic inclusion in Chad, the oil revenues redistribution policy should fit the specific local development needs.

Suggested Citation

  • Gadom DJAL-GADOM & Armand MBOUTCHOUANG KOUNTCHOU, 2016. "Cross-County Poverty Comparisons In Chad: The Impact Of The Oil Revenues Redistribution Policy," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 44, pages 61-78.
    • Handle: RePEc:tou:journl:v:44:y:2016:p:61-78
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    More about this item

    Keywords

    CHAD; POVERTY INCIDENCE; LOCAL DISPARITIES; OIL EXPLOITATION; OAXACA DECOMPOSITION; DELTA METHOD;
    All these keywords.

    JEL classification:

    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

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