In this paper, I examine input-output linkages between industries as a mechanism for natural resource- driven economic development. In 2007, Ghana discovered its most significant column of high-grade offshore oil. I use night-time light data to perform a difference-in-differences analysis, comparing districts heavily dependent on the petroleum industry with other districts before and after the oil discovery. Highly dependent districts are districts in which industries with strong forward or backward linkages with the oil and gas industry make up a large share of employment. I find that oil and gas discovery increased economic activity in these districts. Additionally, highly dependent districts experienced a structural shift in employment from agriculture to services, bypassing manufacturing.
STEG Working Paper Series
• Research Theme 1: Firms, Frictions and Spillovers, and Industrial Policy,
Cross-Cutting Issue 1: Gender,
Cross-Cutting Issue 2: Climate Change and the Environment,
Cross-Cutting Issue 3: Inequality and Inclusion
Natural-resource-driven structural transformation and economic growth: exploring the roles of forward and backward linkages
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