The impact of oil revenues on wellbeing in Chad

Abstract

This paper uses two recent household surveys, together with data from the College for Control and Monitoring of Oil Revenues, to analyse the impact of oil revenues on wellbeing in Chad. Following a multiple-correspondence analysis to estimate a synthetic household-based multidimensional wellbeing (MDW) index, we used the difference-in-difference approach to assess the impact of oil revenues on average MDW at the department level. We found evidence that departments in Chad that received significant oil transfers have a higher MDW compared to those disadvantaged by the oil-revenue-redistribution policy. We conclude that, in order to promote economic inclusion, the government of Chad should better develop oil-revenue-redistribution policies according to local development needs and target the poorest departments.

Do foreign aid triggers economic growth in Chad? A time series analysis

“…In addition, Chad appears more affected by the resource curse than are other developing countries, despite their vast oil wealth. Financial challenges related to revenue generation and extraction-related management, especially in oil production, followed by accidental crude oil spills and social challenges related to the living standards and wellbeing of people are some of the problems facing Chad [25]. Little is known about the effect of foreign aid on the economic growth of chad.…”

Did Something Change in Chad After the Oil Era? Evidence From a Rolling-Windows Analysis

“…Most investments in Chad had come from the oil sector, and foreign direct investment had declined sharply alongside the decline in investments in the oil sector. Gadom et al (2018) used the multidimensional wellbeing index (MDW-index) to analyze the effects oil revenues have on welfare in Chad. The authors employed two surveys INSEED had performed in 2003 and 2011.…”

Vulnerability and policy responses in the face of natural resource discoveries and climate change: introduction

“…A recent body of literature focuses on different spending strategies to increase growth and improve welfare through the Bird in Hand theory or the Permanent Income Hypothesis (see e.g., Collier et al, 1997;van der Ploeg, 2011;van der Ploeg and Venables, 2011;Arezki et al, 2012 andGo et al, 2016).…”

“…In Chad, rent seeking behaviour by elites and weak institutional quality have hindered rent redistribution policies, although they remain objectives of its Poverty Reduction Strategy and National Development Plan. Gadom et al (2018) use an ex-post microeconomic impact evaluation analysis to assess the effect of oil revenues on well-being. While revenues from oil exploitation are found to substantially improve multidimensional well-being, an inappropriate and discretionary use of such revenues is likely to further exacerbate existent inequalities in Chad.…”