Assessing the impact of oil and mining sectors’ boom on the labor market
and economic development in Niger
Marché du travail et développement économique au Niger: Analyse de l’impact des revenus miniers
|In this study, a team of local PEP researchers in Niger evaluate different policy options to utilize revenues from the booming oil/mining sector in order to maximize benefits in terms of development for the country. Find out more below, and/or through the following PEP publications: working paper 2015-04 and policy brief 121 (both in French).|
This project is led by a French-speaking PEP research team based in Niger, and presented (with subtitles) by two of its members in the video
Context and objective
The objective of this study is to analyze the impact of public spending derived from oil and mining sector’s revenues, in Niger, on the country’s economic development through a focus on the labor market trends.
The initiative coincides with the beginning of a resource boom in Niger, making it possible to test the effectiveness of government policies in terms of employment and investment in education, defined as priorities in the context of the National Economic and Social Development Strategy.
Indeed, policies implemented in Niger since the 70-80's, in response to the expansion of the mining sector (mainly uranium and coal then), have failed to impulse and sustain the country's economic development, as well as to improve the business climate and reduce the risks associated with extractive industries - such as vulnerability to world demand/prices and dutch disease syndromes - (FMI, 2012).
It is expected that, in addition to job creation and related benefits, the capacity of the mining sector to generate positive and visible effects/contributions in terms of economic development depends on the importance of the share of revenues that falls to the State (and thus available for public spending).
Method and findings
The research team has conducted a series of macro policy simulations, using a computable general equilibrium (CGE) model of the Niger economy (find out more about the method), to derive the impacts of prospective increases in public expenditures, financed by revenues from the oil and mining sector. In particular, the researchers aim to explore structural changes that may occur in the labour market, following investments and policy measures implemented in this context.
The ultimate objective is to inform the government’s decisions in terms of policy and investments (public spending), in order to maximize their potential benefits for the country’s population and development.
Among their simulation results, the researchers have found that:
- A subsidy to the agricultural sector would have positive effects on production, thus contributing to alleviate food insecurity in the country. The effects on the national economy as a whole, however, are not significant.
- A subsidy to electricity consumption for the industrial sector would contribute to not only strengthen this sector, but also to increase job opportunities in the country. The general economic growth effects are also more important with this second option.
Find out more tabout the research methods and findings, as well as ensued policy implications, through the PEP publications posted below - in particular, the working paper 2015-04 and policy brief 121 (both publications are in French).
Project links and documents
|Find out more about this project - its analytical approach and outcomes - through the following links/documents:|
|PEP Project PMMA-12453||Working paper 2015-04 (PDF - in French)|
|Project proposal (Word - in French)||Policy brief 121 (PDF - in French)|
|Final report (PDF - in French)||Slide presentation (PDF)|
Thanks to the various and relevant institutional affiliations of its members, the research team has been invited to consult with multiple government agencies and institutions, listed below, all throughout the project cycle:
These consultations have provided important inputs for the project’s design and orientations, according to the potential uses of results. They have also resulted in raising keen interest in the expected outcomes, among consulted parties, who have all assured both their support in the conduct of the study, as well as for the dissemination of the findings.
Recent updates reported by the project team
In June 2014, two of the team members were invited to present their PEP research work and findings during the 5th GRETHA international conference on economic development, in France.
In September 2014, the team officially presented their research outcomes during a first meeting held at/with the National Economic, Social and Cultural Council of Niger – in charge of providing recommendations and advisory for the President Office and the National Assembly.
More information is expected to be submitted shortly, by the team, regarding the outcomes of these and further dissemination activities...
The project described above is one of the several projects selected for support under the PEP research and capacity building initiative for Policy Analysis on Growth and Employment (PAGE) in developing countries. The PAGE program is co-funded by UK's Department for International Development (DFID) and Canada's International Development Research Center (IDRC).
This particular project was selected in June 2013, following the first of three competitive calls for proposals of the PAGE initiative. A total of 65 projects have been selected for support under the three PAGE funding rounds. Find out more