Working Paper 2017-06
worki! ownng pap er 2017-06 Universite Laval The impact of oil exploitation on wellbeing in Chad Gadom Djal Gadom Armand Mboutchouang Kountchou Gbetoton Nadège Adèle Djossou Gilles Quentin Kane Abdelkrim Araar February 2017 i The impact of oil exploitation on wellbeing in Chad Abstract This study assesses the impact of oil revenues on wellbeing in Chad using data from the two last Chad Household Consumption and Informal Sector Surveys (ECOSIT 2 & 3), conducted in 2003 and 2011, respectively, by the National Institute of Statistics for Economics and Demographic Studies (INSEED) and, from the College for Control and monitoring of Oil Revenues (CCSRP). To achieve the research objective, we first estimate a synthetic index of multidimensional wellbeing (MDW) based on a large set of welfare indicators. Then, the Difference-in-Difference (DID) approach is used to assess the impact of oil revenues on the average MDW at departmental level. We find evidence that departments receiving intense oil transfers increased their MDW about 35% more than those disadvantaged by the oil revenues redistribution policy. Moreover, the further a department is from the capital city N’Djamena, the lower its average MDW. We conclude that to better promote economic inclusion in Chad, the government should implement a specific policy to better direct the oil revenue investment in the poorest departments. Keys words: Poverty, Multidimensional wellbeing, Oil exploitation, Chad, Redistribution policy. JEL Codes: I32, D63, O13, O15 Authors Gadom Djal Gadom Mboutchouang
[Show full text]