Escaping the Dutch Disease: The Role of Public Investment in Niger

Issoufou Soumaila

Asian Economic and Financial Review, 2015, vol. 5, issue 2, 333-339

Abstract: This paper describes the use of a recursive dynamic computable general equilibrium model to the analysis of two investment strategies of natural resources revenue in Niger. Potential impact of education and infrastructure investment on some selected macroeconomic and welfare variables are simulated. The results show that the economy performs better with a low risk of Dutch Disease when the windfall is invested either in education or in infrastructure. Superior results are obtained when the windfall is simultaneously invested in education and infrastructure, which implies a complementary effect between the two investment strategies.

Keywords: Natural resource windfall; Public investment; CGE modelling; Niger. (search for similar items in EconPapers)
Date: 2015
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