The Micro-Foundations of the Resource Curse : Mineral Ownership and Local Economic Well-Being in Sub-Saharan Africa

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2020
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International Studies Quarterly. Oxford University Press. 2020, 64(3), pp. 530-543. ISSN 0020-8833. eISSN 1468-2478. Available under: doi: 10.1093/isq/sqaa033
Zusammenfassung

The quantitative evidence on whether extractive industries generate economic wealth at the local level is far from conclusive. In line with recent studies highlighting the moderating role of institutions and governance structures in the resource–development nexus, we argue that the effect of mining on local economic well-being is largely driven by different control rights regimes. We claim that domestic mineral production stimulates local income more than internationally controlled extraction, since national mining companies promote more backward economic linkages and have higher incentives to engage in local capacity building. To test our micro-level arguments, we combine information on districts’ economic well-being as well as individual's assessments of their personal economic situation with our own dataset on the control rights of copper, gold, and diamond mines. Relying on these data, we perform district- and individual-level analyses of sub-Saharan Africa covering the period from 1997 to 2015. Our instrumental variable estimations and fixed effects models show that the presence of domestic mining companies is associated with increased local wealth. Multinational firms, by contrast, are linked to increased regional unemployment. They largely fail to promote subnational economic well-being.

Zusammenfassung in einer weiteren Sprache
Fachgebiet (DDC)
320 Politik
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Resource curse; economic growth; mining industry; well-being
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ISO 690WEGENAST, Tim, Arpita Asha KHANNA, Gerald SCHNEIDER, 2020. The Micro-Foundations of the Resource Curse : Mineral Ownership and Local Economic Well-Being in Sub-Saharan Africa. In: International Studies Quarterly. Oxford University Press. 2020, 64(3), pp. 530-543. ISSN 0020-8833. eISSN 1468-2478. Available under: doi: 10.1093/isq/sqaa033
BibTex
@article{Wegenast2020-09-01Micro-49898,
  year={2020},
  doi={10.1093/isq/sqaa033},
  title={The Micro-Foundations of the Resource Curse : Mineral Ownership and Local Economic Well-Being in Sub-Saharan Africa},
  number={3},
  volume={64},
  issn={0020-8833},
  journal={International Studies Quarterly},
  pages={530--543},
  author={Wegenast, Tim and Khanna, Arpita Asha and Schneider, Gerald}
}
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