Working Paper

Mining and Petroleum Development and Public Spending Policies in Niger: A Dynamic Calculable General Equilibrium Analysis

This paper is also available in French: Développement minier et pétrolier et politiques de dépenses
publiques au Niger : une analyse en équilibre général calculable dynamique. This study analyzes public spending options from mining and oil resources and their impact on economic variables in the Nigerien economy. The model is based on an updated Social Accounting Matrix for 2012 that takes into account the structural changes in the economy. To analyze the different policy options, we use a dynamic calculable general equilibrium model (CGE) that takes into account spillover effects of public investment. Two scenarios are analyzed: (1) public spending in road infrastructure and (2) investment in the agricultural infrastructure. Both scenarios are compared to a situation where there is no intervention and thus where revenues from mining and oil are allocated by the market.