The Local Economic Effects of Natural Resources: Evidence from Ghana

Using household survey data and location information on oilfields, this paper examines the short-term welfare impacts of Ghana’s offshore oil discovery production. The authors find that production increased real income employment by 4 percent 4.5 percent, respectively. However, it had no effect consumption poverty reduction. effects are larger for skilled workers than unskilled workers. positive in non-oil local sectors concentrated manufacturing construction. do not significant agricultural service where a large proportion individuals below line engaged. This largely explains why but reduction, as benefited non-poor rather poor.