CROSS-COUNTY POVERTY COMPARISONS IN CHAD: THE IMPACT OF THE OIL REVENUES REDISTRIBUTION POLICY

Gadom Djal-Gadom () and Armand MBOUTCHOUANG Kountchou ()
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Gadom Djal-Gadom: University of N’Djamena, Chad
Armand MBOUTCHOUANG Kountchou: University of Yaoundé II, Cameroon

Region et Developpement, 2016, vol. 44, 61-78

Abstract: This paper analyses the determinants of cross-county poverty disparities in Chad within the context of oil exploitation. Data is provided from the last Chad Household Consumption and Informal Sector Survey (ECOSIT 3) and from the College for Control and Monitoring of Oil Revenues (CCSRP). The incidence of poverty is separately estimated for two groups of counties, according to the amount of oil revenues received with respect to their demographic weights. The difference between the poverty estimates is decomposed into characteristics and coefficients effects following the generalization of Oaxaca-type decomposition for poverty analysis. Results highlight the existence of a highly significant poverty disparity between the two groups of counties. The county-group with a relatively low share of oil revenues has a higher poverty rate than the other group. The effect of county characteristics explains 78.3% of this difference in poverty, while 21.7% is explained by the return effect due to the differential impact of the characteristics over counties. It is expected that to better promote economic inclusion in Chad, the oil revenues redistribution policy should fit the specific local development needs.

Keywords: CHAD; POVERTY INCIDENCE; LOCAL DISPARITIES; OIL EXPLOITATION; OAXACA DECOMPOSITION; DELTA METHOD (search for similar items in EconPapers)
JEL-codes: C20 D63 I30 O13 Q32 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:tou:journl:v:44:y:2016:p:61-78

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