Transparency Matters

Atanas Christev, Akram Esanov

Research output: Chapter in Book/Report/Conference proceedingChapter (peer-reviewed)

Abstract

Using data from 60 resource-abundant countries, we analyze the impact of the Extractive Industry Transparency Initiative (EITI) membership on foreign direct investment, corruption and the cost of sovereign borrowing. Greater fiscal transparency, measure by EITI membership, tends to increase foreign direct investment flows into the country and reduce the incidence of corruption. These results have important policy implications for governments, investors and civil society groups. Natural-resource-rich countries interested in eradicating corruption and attracting more direct investments from foreign countries ought to enhance fiscal transparency and establish policies in line with economic fundamentals.
Original languageEnglish
Title of host publicationThe Economics of Natural Resources in Latin America
Subtitle of host publicationTaxation and Regulation of the Extractive Industries
EditorsOsmel E. Manzano, Fernando Navajas, Andrew Powell
PublisherRoutledge
Pages201-234
ISBN (Electronic)9781315111377, 9781351618861
ISBN (Print)9781138085367
Publication statusPublished - Nov 2017

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    Christev, A., & Esanov, A. (2017). Transparency Matters. In O. E. Manzano, F. Navajas, & A. Powell (Eds.), The Economics of Natural Resources in Latin America: Taxation and Regulation of the Extractive Industries (pp. 201-234). Routledge.