Donor interest in the extractives sector is based upon the premise that it represents an opportunity to improve a country’s development prospects. However, in many cases the presence of extractive resources is associated with poor economic performance. As a result, some donors are trying a...

We show that the incorporation of offshore entities increases when oil and gas exploration licences are awarded. We exploit leaked data on the incorporation of shell companies and detailed information on tax havens and the awarding rounds of oil licences to construct a new data set covering 119...

Tanzania is rich with natural resources, which have significant potential to contribute to the country's economic development. Several laws recently passed in Tanzania are dedicated to establishing linkages between foreign firms in natural resource extraction and the local economy. This paper...

This paper aims to provide theoretical and empirical insights into the puzzling simultaneous rise in foreign direct investment (FDI) inflows in Africa and capital flight from the continent over the past decades. It specifically explores two questions: Is FDI a potential driver of capital flight?...

The term fiscal resource curse refers to countries' inability to raise taxes from a broad base in the presence of natural resources. We employ a novel instrumental variable strategy to estimate the causal effect of resource revenues on non-resource tax effort by exploiting the so-called 'China...

This paper explores the extent to which government revenue is affected by external shocks, and whether these effects are different for resource-rich as compared with non-resource-rich countries. We are particularly interested in the fate of poorer countries, as we assume they will find it more...

This paper reviews the political economy of extractive resources and the associated resources sector governance agenda. The consensus that good sector governance improves the developmental impacts of extractive resources exploitation is premised on the understanding that institutions matter for...

As it transitions to an oil-producing country, Uganda's investments in infrastructure and physical capital will increasingly depend on the ability of the construction sector to respond to surges in demand and transform investment effort into outcomes. Using administrative and survey data, this...

The governance of natural resource wealth is widely considered to constitute a key determinant in whether the extraction of natural resources proves to be a blessing or a curse. What is meant by governance can span a wide range of components, while the steps to achieving good governance remain...

The exploitation of natural resources is a huge opportunity, but one that carries considerable risks. Relative prices in resource-exporting economies tend to push them towards economic structures dominated by the resource sector. This paper explores ways to achieve diversification in a...