Natural Resource Windfalls In Nonproducing Areas

Alejandro Ome and Javier Pérez

No 12287, IDB Publications (Working Papers) from Inter-American Development Bank

Abstract: We study the impact of natural resource royalties on educational outcomes in Colombia. We analyze a reform enacted in 2012 that made the distribution of these royalties more equitable. Before the reform, most royalties were assigned to the regions where the natural resources were exploited; with the reform non-producing regions started to receive royalties. We estimate the impact of the reform on regions that most benefited from it, using the international price of oil as an instrument in a difference-in-differences framework. We found positive impacts on enrollment in primary, secondary, and high schools, but no conclusive evidence on academic achievement at any of these levels.

Keywords: royalties; public finance; instrumental variables; transformación productiva; Extractivas; región andina; Andea Region (search for similar items in EconPapers)
JEL-codes: C26 H52 H72 O13 O54 (search for similar items in EconPapers)
Date: 2022-06
New Economics Papers: this item is included in nep-dev, nep-env and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:idb:brikps:12287

DOI: 10.18235/0004320

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