Impacts of Oil Discovery on Households in Uganda: A CGE Analysis

By: Koire Twaha, Arshad Ali Bhatti, Hasnain A. Naqvi

Abstract

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.

Pub. Link: https://publishing.globalcsrc.org/ojs/index.php/reads/article/view/391/539