Public investment to reserve Dutch disease: the case of Chad

This paper studies the relevance of agricultural policies for avoiding Dutch Disease, which affects many less developed countries experiencing a resource boom. Using a computable general equilibrium model calibrated for Chad, we study the impact of using this country’s annual oil revenue for public investment, particularly in the development of road and irrigation infrastructure. Our model takes into account the integration of markets and migration processes. We find that improving water access would reduce Chad’s dependence on food aid and entail a substantial improvement in rural household welfare.


Issue Date:
2006
Publication Type:
Working or Discussion Paper
Record Identifier:
http://ageconsearch.umn.edu/record/55398
PURL Identifier:
http://purl.umn.edu/55398
Total Pages:
57
JEL Codes:
O110; O130; Q18
Series Statement:
DSGD Discussion Papers
35




 Record created 2017-04-01, last modified 2018-01-22

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)