Accepted paper:

Natural Resources and Local Economic Impacts: Evidence from Ghana's Offshore Oil Discovery


Josephine Ofori Adofo (University of Hawaii at Manoa)
Tomomi Tanaka (The World Bank)
Nori Tarui (University of Hawaii)

Paper short abstract:

Does the development of a new industry lead to equitable economic growth in developing countries? This research provides an insight on this question by investigating the impacts of Ghana's offshore oil discovery across households with different socioeconomic backgrounds and spatial locations.

Paper long abstract:

We examine the local economic impacts of Ghana's oil discovery in 2007 using a difference in difference strategy that exploits variation in time and geographic location of oil fields. Our results suggest a positive effect of the oil discovery on real income and employment for households in oil extraction areas. However, the effects on employment are largely found in the manufacturing and construction sectors. The findings imply that the new discovery has a potential of being a blessing if participation of local firms through local procurement is enhanced.

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