The Impact of Oil Exploitation on Wellbeing in Chad
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.