Rent Without Access: The Resource Curse and Financial Exclusion in Extractive Economies

Randy Kambana Moïse

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Abstract: While natural resource wealth should, in theory, fuel development, many extractive economies remain structurally excluded from financial services. This paper investigates the hypothesis of a « financial exclusion curse » in resource-rich African countries, by empirically comparing them to resource-poor but financially inclusive peers. Using Propensity Score Matching, the Synthetic Control Method, and dynamic panel GMM models, we demonstrate a robust negative relationship between resource dependency and financial inclusion. Yet, comparative insights from Southeast Asia and Latin America reveal that inclusive financial ecosystems can flourish—even in rent-driven contexts—when institutional quality, digital innovation, and proactive policy align. Our findings call for a paradigm shift: beyond banking access, states must reshape financial infrastructures to democratize opportunity in resource economies.

Date: 2025-08-09
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Persistent link: https://EconPapers.repec.org/RePEc:osf:socarx:qpz6n_v1

DOI: 10.31219/osf.io/qpz6n_v1

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