Chapter No. 5:Discussion and
Conclusion
5.1Discussion
The oil sector remains a significant source of energy and
revenue for many countries during the past few years and many countries are the
participants in this mechanism (Sen & Ganguly, 2017). Currently, there are
more than 90 oil-exporting nations around the globe. Increasing and decreasing
prices of oil mainly affect both importers and exporters of oil and oil prices
also affect the manufacturers and the extent of production costs. Economy
growth of many countries mainly relies on oil products and its changing prices.
Therefore, in the past few years' research study on oil export
and its impact on the economic development of a country is very significant.
According to research by Nambiappan et al. (2018), the oil export factors
affect the overall economy of a country and its other revenue generated
sectors. In turn, these factors impact the price level, economic growth, and
revival, inflation rate, stock market growth, and finance growth as well.
However, the main objective of this research study is to investigate the impact
of revenue of oil export on the economic development of Chad and also on the
consumer's wellbeing in Chad. This research paper also examines the impact of
oil export revenue on agriculture, manufacturing, and the per capita income of
Chad. According to the initial findings of the study, it has been revealed that
a significant increase in oil export revenue positively influences the process
of economic growth. Similarly, research by Al-Maamary, Kazem, and Chaichan
(2017) explains that the revenue from oil export is of significant value to
many countries' economies, given that oil is one of the largest globally traded
products, both in value and volume. According to recent statistics, the energy
department of Chad states that oil export revenue could help in lowering the
prices of gas on a large scale, and it also helps in developing long term
benefits for the overall economy of the country. Positive revenue generated by
oil export also helps in developing a higher level of investment in the country
and it also generates greater energy security that could be advantageous for
employees and consumers (Sen & Ganguly, 2017). These factors significantly
influence the process of economic development of the country. Therefore, the
first hypotheses regarding the direct impact of oil export revenue on the
economic development of Chad have been accepted and significantly supported by
the results of the study.
Measurements of results from the SEM technique also suggest
that oil export revenue positively relates to the agriculture sector and its
sustainable development. A study by Rukhaia-Mosemgvdlishvili (2018) illustrates
that the high revenue earned from oil export could help the agricultural sector
of the country in enhancing the existing system of agriculture. With positive
revenue from oil export, a country could facilitate the transport system of its
agriculture sector mainly by facilitating the farmers to generate further farms
and also enable them to sell their agriculture products in other markets.
Positive revenue earned from oil export a country could also develop proper
marketing benefits to their agricultural sector. The government could enhance
the infrastructure of marketing and strength to help the farmers to sell their
goods at a reasonable price (Bammann, 2019). Furthermore, from revenue earned
from oil export, a country could also improve the supply chain network of their
agricultural sector and also mainly by taking effective steps that are needed
to improve the existing systems. That's why the hypotheses related to the
direct impact of oil export revenue on the agricultural sector have been
accepted.
Further results and findings of this research suggest that oil
export revenue could play a significant role in improving the existing
operations and functions of the manufacturing sector. The manufacturing sector
has been considered as a significant sector that can help in boosting other
sectors of the country. A country could boost the manufacturing sector by
revenue earned from oil export mainly by enhancing capacity utilization and
provide alternative technologies to different manufacturing sectors of the
country at reasonable costs (Solano-Rodríguez et al., 2019). With higher
revenue earned from oil export, a country could enable various manufacturing
sectors that are unable to replace old machinery which could be expensive for
them. So, due to this limitation government can help manufacturing sectors in
enhancing their productivity. Therefore, the hypotheses have been accepted and
supported by the results of the research. Moreover, other results of the
research also suggest that oil export revenue negatively influences the
unemployment rate. A higher oil export could also contribute to a lower
unemployment rate. In short, Abdlaziz, Naseem, and Slesman (2018) in a study
also explains that oil export can enhance the marginal cost of manufacturing in
many sectors while minimizing manufacturing and thus decreasing the
unemployment rate in the country. That's why the results of the study indicate
that oil export negatively impacts on the unemployment rate. The higher is the
oil export revenue, the lower will be the unemployment rate.
The results of the study explain that this is a very positive
relationship between Per Capita income and the Oil revenue as the result of the
previous studies shows that this has a very positive and very significant role
in making the economy of the country better and developed by increasing the Per
capita Income. The study by Ajibola, Enilolobo, and Theodore (2017) also
explains that how this relationship can be made stronger and positive as the
revenue of oil Export can bring about the increase in the income of the
individual and a rise in the living standard of the people and this change of
the income increase can also bring betterment in the economy of the country.
The study proves that there is a positive relationship between the Oil export
revenue and Common wellbeing. The welfare of the people is the real purpose of
the economy of the country and its strength. The money earned through oil
export can be utilized in small business and building hospitals, schools, and
educational and technical institutions, sports ground and the standard of food
and livelihood can be improved by such projects to make a better place to live
in. This has a very positive and efficient role in the development and
supporting the life of common people. The revenue used for the wellbeing of
society and common people generates a more educated and healthy society
(Nambiappan et al., 2018). The results of the study also suggest that this
relationship makes the common people closer and they trust the economy of their
country and try to play their role in making the economy of the country strong.
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