Impacts of Oil Discovery on Households in Uganda: A CGE Analysis
DOI:
https://doi.org/10.26710/reads.v5i1.391Keywords:
Model, Nonrenewable Resources, Oil extraction, Oil export, Consumers’ welfareAbstract
This study analyses the impact of oil discovery on household poverty and inequality by employing a CGE model using 2007 SAM for Uganda. The oil production and export simulations show a decline in absolute poverty, poverty gaps and severity. Further, our findings showcase a positive effect of production and exports on household welfare, except for urban farm households. This study recommends for the managers of the economy to pay special attention towards injection of a reasonable portion of oil rent in sectors which positively contribute to the economy, diversify non-oil exports and above all, boost private consumption.
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