Transparency and natural resources in sub-Saharan Africa

Keisuke Okada and Takayoshi Shinkuma

Resources Policy, 2022, vol. 76, issue C

Abstract: The resource curse has drawn much attention from economists and policymakers. An effort to resolve this curse is the Extractive Industries Transparency Initiative (EITI), a global standard to improve transparency and accountability in resource-abundant countries. This study theoretically and empirically assesses the impact of EITI on natural resource rents. We present a simple model to describe the collusion between politicians and resource companies. Our model reveals that monitoring both politicians and resource companies under schemes such as EITI is effective in preventing illegal transactions. Then, using data for sub-Saharan African countries from 1991 to 2015, we show that EITI implementation increases total natural resource rents and mineral rents, although it has no significant impact on oil and natural gas rents.

Keywords: Resource curse; Natural resource; Transparency; EITI (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:76:y:2022:i:c:s0301420722000253

DOI: 10.1016/j.resourpol.2022.102574

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