Impact of oil export revenue on economic growth and consumers wellbeing in Chad

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Impact of Oil Export Revenue on Economic Growth and Consumers Wellbeing in Chad

Student Name: Kadidja Sarah Mamadou

Student ID: 208183

University Name:Ipag Business School

Degree Program: Msc in International Business Management

Acknowledgement:

I would like to thank the Almighty God for His countless blessings.

I am very grateful to my lovely parents for their tireless guidance, support and motivation since my childhood till today.

A special thanks to Professor Phillipe Weiss for his understanding, support and guidance throughout this thesis topic.

Finally, I would like to acknowledge all my lecturers, my classmates and friends for making my journey successful. I wish all my classmates good luck in future pursuits!

Table of Contents

Abstract 3

Chapter No. 1:Introduction 6

1.1 Background 7

1.2 Problem statement 10

1.3 Justification/ Rationale 10

1.4 Research objectives 11

1.5 Research questions and hypothesis 11

1.6 Significance of study 12

1.7 Structure of the thesis 13

Chapter No. 2:Literature Review 14

2.1OPEC and Chad 14

2.2 Petroleum industry and oil reserves in Chad 15

2.2.1Annual revenue from non-oil sectors 17

2.3 GDP of Chad 17

2.4 Unemployment rate in Chad 18

2.4.1Workforce of different sectors and minimum wages in Chad 18

2.5 Unemployment rate in Chad 19

2.5.1International reserves of Chad 19

2.6 Governmental Policies 20

2.6.1Level of inflation now and before oil discovery 21

2.6.2Budget allocation to manufacturing, agriculture and education sector of Chad 21

2.7 Oil Export revenue and Economic Growth 22

2.8 Oil Export Revenue and Manufacturing sector 23

2.9 Oil Export Revenue and Agricultural Growth 24

2.10Oil Export Revenue and Per Capita Income and Employment rate 25

2.11Oil Export Revenue and Consumer Wellbeing 26

Chapter No. 3:Research Methodology 27

3.1Philosophy, Methods and Approach of Research 27

3.2 Research Nature 29

3.3 Time Horizon 29

3.4 Sampling and Population 29

3.4.1Sampling Unit and Sampling frame 29

3.4.2Sampling techniques 30

3.5 Data collection procedure 30

3.5.1Collection of Primary Data 30

3.5.2Secondary Data 31

3.5.3Measures 31

3.6 Data Analysis 32

Chapter No. 4:Results and Analysis 32

4.1Primary Data Results 32

4.1.1Demographic Profile 32

4.1.2Survey Results 33

4.1.3Summary of Primary Data Results 39

4.2 Secondary Data Results 40

4.2.1Descriptive Analysis 40

4.2.2Correlation Analysis 41

4.2.3Normality Graphs 42

4.2.4Regression Analysis 43

Chapter No. 5:Discussion and Conclusion 45

5.1Discussion 45

5.2 Conclusion 47

5.3 Implications 49

5.4 Limitation/Future research indications 50

Chapter No. 6:References 51

6.1Website References 57

List of Table

Table 1: Summary table for Chad oil reserves.............................................................................. 14

Table 2: Key economic facts of Chad. .......................................................................................... 15

Table 3: Descriptive Analysis ....................................................................................................... 34

Table 4: Correlation Analysis ....................................................................................................... 35

Table 5: Regression Analysis........................................................................................................ 38List of Figure

Figure 1: Chad GDP per Capita from 2010 to 2018 ....................................................................... 8

Figure 2: Chad Dependence on Oil Export ..................................................................................... 8

Figure 3 Gender Profile ................................................................................................................ 28

Figure 4: Education Profile ........................................................................................................... 29

Figure 5: Results for Question 1 ................................................................................................... 29

Figure 6: Results for Question 2 ................................................................................................... 30

Figure 7: Results for Question 3 ................................................................................................... 30

Figure 8: Results for Question 4 ................................................................................................... 31

Figure 9: Results for Question 5 ................................................................................................... 31

Figure 10: Results for Question 6 ................................................................................................. 32

Figure 11: Results for Question 7 ................................................................................................. 33

Figure 12: Results for Question 8 ................................................................................................. 33

Figure 13: Normality Graphs ........................................................................................................ 37

Impact of Oil Export Revenue on Economic Growth and Consumers Wellbeing in Chad

Abstract

During just the last few years, one of the most haunting questions is whether natural resources such as oil promote or hamper the economic growth of the countries or not. Indeed, the export of oil is a significant process to earn revenue which enables prosperity for many countries. The following paper investigates the impact of oil export revenue on manufacturing growth, agricultural sector growth, GDP, consumer well being, per capita income and unemployment rate Chad. The complete thesis consists of five chapters including introduction, review of literature, research methodology, research analysis and finally discussion and conclusion. Moreover, to shed light on this question, the researcher used a philosophical direction under the data collection process. Under the following study, the researcher has used the explanatory approach to analyse the impact of oil export revenue on economic growth and well being of Chad. Both primary and secondary approach is being used to collect and analyse the data. The primary data have been collected through questionnaire distribution from the oil consumers. While the secondary data have been collected through the previous reports such as online World Bank reports as well as global economic trends. The population was the local oil consumers and workers in the Chad oil industries. The data collected only from 200 consumers highlights the great impact of oil export revenue on the growth of the country. The overall results and table of findings of the study have concluded that the maximum revenue earned from oil export positively affects the per capita income, consumer well being, growth in the manufacturing and agricultural sector of Chad. In the same manner, the oil export revenue negatively affects the unemployment rate within the country. As the higher revenue will create higher opportunities for employment within the country and vice versa. Finally, some of the limitations and hinders are discussed to provide a useful suggestion for future researchers.

Keywords: Oil export revenue, Economic growth, consumer well being, agricultural growth, manufacturing growth, unemployment rate, per capita income.