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Does Information Break the Political Resource Curse? Experimental Evidence from Mozambique

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  • Alex Armand
  • Alexander Coutts
  • Pedro C. Vicente
  • Inês Vilela

Abstract

Natural resources can have a negative impact on the economy through corruption and civil conflict. This paper tests whether information can counteract this political resource curse. We implement a large-scale field experiment following the dissemination of information about a substantial natural gas discovery in Mozambique. We measure outcomes related to the behavior of citizens and local leaders through georeferenced conflict data, behavioral activities, lab-in-the-field experiments, and surveys. We find that information targeting citizens and their involvement in public deliberations increases local mobilization and decreases violence. By contrast, when information reaches only local leaders, it increases elite capture and rent-seeking.

Suggested Citation

  • Alex Armand & Alexander Coutts & Pedro C. Vicente & Inês Vilela, 2020. "Does Information Break the Political Resource Curse? Experimental Evidence from Mozambique," American Economic Review, American Economic Association, vol. 110(11), pages 3431-3453, November.
    • Handle: RePEc:aea:aecrev:v:110:y:2020:i:11:p:3431-53
    DOI: 10.1257/aer.20190842
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    References listed on IDEAS

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    1. Halvor Mehlum & Karl Moene & Ragnar Torvik, 2006. "Institutions and the Resource Curse," Economic Journal, Royal Economic Society, vol. 116(508), pages 1-20, January.
    2. Paler, Laura, 2013. "Keeping the Public Purse: An Experiment in Windfalls, Taxes, and the Incentives to Restrain Government," American Political Science Review, Cambridge University Press, vol. 107(4), pages 706-725, November.
    3. Mr. Giovanni Melina & Yi Xiong, 2013. "Natural Gas, Public Investment and Debt Sustainability in Mozambique," IMF Working Papers 2013/261, International Monetary Fund.
    4. McKenzie, David, 2012. "Beyond baseline and follow-up: The case for more T in experiments," Journal of Development Economics, Elsevier, vol. 99(2), pages 210-221.
    5. Eoin McGuirk, 2013. "The illusory leader: natural resources, taxation and accountability," Public Choice, Springer, vol. 154(3), pages 285-313, March.
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    Citations

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    Cited by:

    1. Nicolas Berman & Mathieu Couttenier & Victoire Girard, 2023. "Mineral Resources and the Salience of Ethnic Identities," The Economic Journal, Royal Economic Society, vol. 133(653), pages 1705-1737.
    2. Armand, Alex & Coutts, Alexander & Vicente, Pedro C. & Vilela, Inês, 2023. "Measuring corruption in the field using behavioral games," Journal of Public Economics, Elsevier, vol. 218(C).
    3. Christa Brunnschweiler & Ishmael Edjekumhene & Paivi Lujala & Sabrina Scherzer, 2022. "You need to have this information: Using videos to increase demand for accountability on public revenue management," University of East Anglia School of Economics Working Paper Series 2022-10, School of Economics, University of East Anglia, Norwich, UK..
    4. Patrick Premand & Dominic Rohner, 2024. "Cash and Conflict: Large-Scale Experimental Evidence from Niger," American Economic Review: Insights, American Economic Association, vol. 6(1), pages 137-153, March.
    5. Michael Callen & Jonathan Weigel & Noam Yuchtman & Michael J. Callen, 2023. "Experiments about Institutions," CESifo Working Paper Series 10833, CESifo.
    6. Sirin, Selahattin Murat & Camadan, Ercument & Erten, Ibrahim Etem & Zhang, Alex Hongliang, 2023. "Market failure or politics? Understanding the motives behind regulatory actions to address surging electricity prices," Energy Policy, Elsevier, vol. 180(C).
    7. Claudia Custodio & Bernardo Mendes & Diogo Mendes, 2021. "Firm responses to violent conflicts," NOVAFRICA Working Paper Series wp2106, Universidade Nova de Lisboa, Nova School of Business and Economics, NOVAFRICA.
    8. Grácio, Matilde & Vicente, Pedro C., 2021. "Information, get-out-the-vote messages, and peer influence: Causal effects on political behavior in Mozambique," Journal of Development Economics, Elsevier, vol. 151(C).
    9. Marco Alfano & Joseph-Simon Görlach, 2023. "Terrorism, Media Coverage, and Education: Evidence from al-Shabaab Attacks in Kenya," Journal of the European Economic Association, European Economic Association, vol. 21(2), pages 727-763.
    10. Cappelen, Alexander W. & Fjeldstad, Odd-Helge & Mmari, Donald & Sjursen, Ingrid Hoem & Tungodden, Bertil, 2021. "Understanding the resource curse: A large-scale experiment on corruption in Tanzania," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 129-157.
    11. Shuguang Jiang & Marie Claire Villeval, 2022. "Dishonesty in Developing Countries -What Can We Learn From Experiments?," Working Papers hal-03899654, HAL.
    12. Raveh, Ohad & Perez-Sebastian, Fidel & van der Ploeg, Frederick, 2024. "Are Technology Improvements Contractionary? The Role of Natural Resources," MPRA Paper 120355, University Library of Munich, Germany.
    13. Vicente, Pedro C. & Vilela, Inês, 2022. "Preventing Islamic radicalization: Experimental evidence on anti-social behavior," Journal of Comparative Economics, Elsevier, vol. 50(2), pages 474-485.
    14. Massimo Morelli & Dominic Rohner, 2023. "Natural resources and conflict: The crucial role of power mismatch and geographic asymmetries," Working Papers 698, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    15. Pedro C. Vicente & Ines Vilela, 2020. "Preventing violent Islamic radicalization: experimental evidence on anti-social behavior," NOVAFRICA Working Paper Series wp2008, Universidade Nova de Lisboa, Nova School of Business and Economics, NOVAFRICA.
    16. Alex Armand & Mattia Fracchia & Pedro C. Vicente, 2024. "Let's call! Using the phone to increase vaccine acceptance," Health Economics, John Wiley & Sons, Ltd., vol. 33(1), pages 82-106, January.
    17. Islam,Asif Mohammed & Lederman,Daniel, 2020. "Data Transparency and Long-Run Growth," Policy Research Working Paper Series 9493, The World Bank.
    18. Alex Armand & Mattia Fracchia & Pedro C. Vicente, 2021. "Let’s call! Using the phone to increase acceptance of COVID-19 vaccines," NOVAFRICA Working Paper Series wp2113, Universidade Nova de Lisboa, Nova School of Business and Economics, NOVAFRICA.
    19. Harris, J. Andrew & van der Windt, Peter, 2023. "Empowering women or increasing response bias? Experimental evidence from Congo," Journal of Development Economics, Elsevier, vol. 164(C).
    20. Victoire Girard & Nicolas Berman & Mathieu Couttenier, 2020. "Natural resources and the salience of ethnic identities," NOVAFRICA Working Paper Series wp2007, Universidade Nova de Lisboa, Nova School of Business and Economics, NOVAFRICA.
    21. Paul Fenton Villar, 2022. "Is there a Mineral-Induced ‘Economic Euphoria’?: Evidence from Latin America," Journal of Happiness Studies, Springer, vol. 23(4), pages 1403-1430, April.
    22. Andersen, Jørgen Juel & Sørensen, Rune Jørgen, 2022. "The zero-rent society: Evidence from hydropower and petroleum windfalls in Norwegian local governments," Journal of Public Economics, Elsevier, vol. 209(C).

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    More about this item

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)
    • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts

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