Oil, investment, and economic development A detailed look at the advent of Chad's oil sector

This study is a historical and analytical overview of the emergence of Chad's oil sector and its possible subsequent socio-economic consequences. I develop and apply an applied general equilibrium (AGE) model that aims to both highlight typical Dutch Disease effects of a resource boom and to confront questions concerning royalty investment decisions that influence the shape and extent of these effects. The model is applied to a set of disaggregated national accounts data that are organized into a unique Social Accounting Matrix (SAM), whose construction is outlined in a later chapter. A thorough presentation of Chad's political and economic history forms the backdrop for the work's more technical pieces.;The work will begin to address some specific questions that have emerged during Chad's oil history of the past decade and that are particularly relevant to a discussion of the World Bank project. Can oil extraction represent an engine of economic development? How do different types of public investment affect the economy, both positively and negatively, and both in the short- and long-term? How does rent-seeking behavior impact the investment outcome? Who are the winners and losers under different scenarios? Which royalty spending policies help to counter the classic symptoms of the Dutch Disease?...