Open AccessImpacts of Oil Discovery on Households in Uganda: A CGE Analysis
Author(s) -
Koire Twaha,
Arshad Ali Bhatti,
Husain Abbas Naqvi
Publication year - 2019
Publication title -
review of economics and development studies
Language(s) - English
Resource type - Journals
eISSN - 2519-9706
pISSN - 2519-9692
DOI - 10.26710/reads.v5i1.537
Subject(s) - computable general equilibrium , poverty , welfare , consumption (sociology) , economics , production (economics) , oil consumption , inequality , agricultural economics , oil production , development economics , economic growth , macroeconomics , market economy , mathematical analysis , social science , mathematics , sociology , automotive engineering , petroleum engineering , engineering
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.