This research examines the impact of Ghana’s 2007 discovery of high-grade offshore oil on the economy, focusing on the role of input-output linkages between industries. It finds that oil extraction has stimulated economic activity in districts with strong linkages to the oil and gas industry, leading to a shift in employment from agriculture to services, while bypassing manufacturing. The findings emphasise the significant potential of the oil and gas industry to stimulate economic development by promoting economic diversification through its local procurement of inputs and the sale of outputs to other industries.
STEG Project Policy Brief
• Research Theme 1: Firms, Frictions and Spillovers, and Industrial Policy,
Cross-Cutting Issue 1: Gender,
Cross-Cutting Issue 2: Climate Change and the Environment
Natural-resource-driven structural transformation and economic growth: exploring the roles of forward and backward linkages
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