Measuring the Contribution of Extractive Industries to Local Development: The Case of Oil Companies in Nigeria

ESSEC Working Paper 1109

30 Pages Posted: 1 Oct 2013

See all articles by Abdou Ka Diongue

Abdou Ka Diongue

Université Gaston Berger de Saint-Louis

Gael Giraud

University of Angers - Bureau of Economic Theory and Application (BETA)

Cécile Renouard

ESSEC Business School

Date Written: July 30, 2011

Abstract

Extractive industries face two main challenges in terms of CSR and poverty reduction: 1) recognize that societal activity is part of their core business; 2) take part in socio-economic projects that contribute to their stakeholders' empowerment and not only to their living conditions. Based on surveys achieved in Nigeria in 2008, the paper presents two societal performance indices meant to be complementary: the Poverty Exit Index (PEI) and the Relational Capability Index (RCI). We show that, while they have fostered the PEI of the local communities, the development projects of the oil companies had a rather negative impact on their RCI. We then identify key variables that can influence positively the RCI and on which a sensible development policy should focus.

Keywords: development indices, capability approach, relational capability, development, poverty, impact assessment

JEL Classification: C43, D21, F21, L71, O12, O55

Suggested Citation

Diongue, Abdou Ka and Giraud, Gael and Renouard, Cécile, Measuring the Contribution of Extractive Industries to Local Development: The Case of Oil Companies in Nigeria (July 30, 2011). ESSEC Working Paper 1109, Available at SSRN: https://ssrn.com/abstract=2333506 or http://dx.doi.org/10.2139/ssrn.2333506

Abdou Ka Diongue (Contact Author)

Université Gaston Berger de Saint-Louis ( email )

Route de Ngallele
Saint-Louis
Senegal

Gael Giraud

University of Angers - Bureau of Economic Theory and Application (BETA) ( email )

61, avenue de la Foret Noire
Strasbourg, 67000
France
+33 3 90 24 21 90 (Phone)

Cécile Renouard

ESSEC Business School ( email )

3 Avenue Bernard Hirsch
CS 50105 CERGY
CERGY, CERGY PONTOISE CEDEX 95021
France

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