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

Wegenast, Tim and Khanna, Arpita and Schneider, Gerald (2020) The Micro-Foundations of the Resource Curse: Mineral Ownership and Local Economic Well-Being in Sub-Saharan Africa. International Studies Quarterly, 64 (3), pp. 530-543. Oxford University Press. doi: 10.1093/isq/sqaa048. ISSN 0020-8833.

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Official URL: https://academic.oup.com/isq/article-abstract/64/3/530/5857816?redirectedFrom=fulltext


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 on the resource development nexus, we argue that the effect of mining on local economic well-being is largely driven by different control right 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 data set on the control rights of copper, gold and diamond mines. Relying on this 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.

Item URL in elib:https://elib.dlr.de/137266/
Document Type:Article
Title:The Micro-Foundations of the Resource Curse: Mineral Ownership and Local Economic Well-Being in Sub-Saharan Africa
AuthorsInstitution or Email of AuthorsAuthor's ORCID iD
Wegenast, TimUniversity of Konstanzhttps://orcid.org/0000-0001-8904-0372
Khanna, ArpitaInstitute of Engineering ThermodynamicsUNSPECIFIED
Schneider, GeraldUniversity of Konstanzhttps://orcid.org/0000-0002-0091-6217
Date:15 June 2020
Journal or Publication Title:International Studies Quarterly
Refereed publication:Yes
Open Access:No
Gold Open Access:No
In ISI Web of Science:Yes
DOI :10.1093/isq/sqaa048
Page Range:pp. 530-543
EditorsEmailEditor's ORCID iD
Prins, Brandon C.bprins@utk.edu0000-0001-5893-2167
Wiegand, Krista E.kwiegand@utk.eduUNSPECIFIED
Publisher:Oxford University Press
Keywords:resource curse
HGF - Research field:Energy
HGF - Program:Technology, Innovation and Society
HGF - Program Themes:Renewable Energy and Material Resources for Sustainable Futures - Integrating at Different Scales
DLR - Research area:Energy
DLR - Program:E SY - Energy Systems Analysis
DLR - Research theme (Project):E - Systems Analysis and Technology Assessment (old)
Location: Stuttgart
Institutes and Institutions:Institute of Engineering Thermodynamics > Energy Systems Analysis
Deposited By: Khanna, Arpita
Deposited On:04 Dec 2020 14:37
Last Modified:04 Dec 2020 14:37

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