The Local Economic Effects of Natural Resources : Evidence from Ghana
This paper estimates the welfare impacts of natural resources by analyzing Ghana’s offshore oil discovery and subsequent production. It finds substantial increases in real income, but no effect on consumption and poverty. The income effects are stronger for skilled workers. Estimates of the effects of oil discovery on employment show that employment in general increased by 4 percentage points. The positive employment effects are largely concentrated in non-oil local sectors: manufacturing and construction. The findings do not show significant impacts on employment in the agriculture and service sectors where a large proportion of individuals below the poverty line are engaged. This largely explains why the oil discovery had no effect on poverty reduction, as it benefited the non-poor rather than the poor.
| Main Authors: | , , |
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| Format: | Working Paper biblioteca |
| Language: | English English |
| Published: |
World Bank, Washington, DC
2022-08
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| Subjects: | NATURAL RESOURCES, LOCAL LABOR MARKETS, JOBS, POVERTY, OFFSHORE OIL, ECONOMIC IMPACTS OF OIL DISCOVERY, CONSUMPTION AND POVERTY, INEQUITY, |
| Online Access: | http://documents.worldbank.org/curated/en/099412508302241335/IDU09726fdc2002db049870bdfa0d326bfad4d4c http://hdl.handle.net/10986/37941 |
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| Summary: | This paper estimates the welfare
impacts of natural resources by analyzing Ghana’s offshore
oil discovery and subsequent production. It finds
substantial increases in real income, but no effect on
consumption and poverty. The income effects are stronger for
skilled workers. Estimates of the effects of oil discovery
on employment show that employment in general increased by 4
percentage points. The positive employment effects are
largely concentrated in non-oil local sectors: manufacturing
and construction. The findings do not show significant
impacts on employment in the agriculture and service sectors
where a large proportion of individuals below the poverty
line are engaged. This largely explains why the oil
discovery had no effect on poverty reduction, as it
benefited the non-poor rather than the poor. |
|---|