Journal
ENVIRONMENT AND DEVELOPMENT ECONOMICS
Volume 23, Issue 5, Pages 580-590Publisher
CAMBRIDGE UNIV PRESS
DOI: 10.1017/S1355770X18000104
Keywords
CGE; economic development; Natural resources; Niger
Categories
Funding
- Partnership for Economic Policy (PEP)
- Department for International Development (DFID) of the United Kingdom
- Government of Canada through the International Development Research Centre (IDRC)
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This study analyzes a public-spending option from mining and oil resources and its impact on Niger's economy. The windfall gain from mining and oil revenues provides an opportunity for the country to reinvest natural resource rents, enhance economic development, and address infrastructure gaps. Drawing on the country's recent and expected mining and oil exploitation, we evaluate the effects of a reinvestment policy in road infrastructure using a dynamic computable general equilibrium (CGE) model. We find that investment in road infrastructure brings positive spillover effects to other sectors of the economy and benefits to the economy in the long run. Our analysis additionally shows that reinvestment in road infrastructure, given the initial state of infrastructure in Niger, could help mitigate the resource curse.
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