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The Extractive Industries Transparency Initiative (EITI) and trust in politicians

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  • Fenton Villar, Paul

Abstract

This study examines the role of a long-standing international transparency scheme known as the Extractive Industries Transparency Initiative (EITI) in helping build trust in politicians. It presents the first known econometric investigation studying the relationship between the EITI and trust and also uses a novel instrument exploiting the variation in neighbouring countries' EITI participation to control for the endogenous nature of one's own EITI involvement. The basis of this instrument reflects on a broader literature concerning the historic influence of policy borrowing in the geographical diffusion of public policies. The results show a positive relationship between countries' EITI membership and trust in politicians. In particular, estimates offer consistent evidence of significantly improved levels of trust among members that are compliant with the EITI's transparency standards.

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  • Fenton Villar, Paul, 2020. "The Extractive Industries Transparency Initiative (EITI) and trust in politicians," Resources Policy, Elsevier, vol. 68(C).
    • Handle: RePEc:eee:jrpoli:v:68:y:2020:i:c:s0301420720302439
    DOI: 10.1016/j.resourpol.2020.101713
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    3. 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.
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    6. Wilson, Christopher & Claussen, Christoffer & Valverde, Pablo, 2021. "Does civil society matter for natural resource governance? A comparative analysis of multi-stakeholder participation and EITI validation outcomes," Resources Policy, Elsevier, vol. 72(C).

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    More about this item

    Keywords

    EITI; Transparency; Trust; Extractive industries; Natural resource management;
    All these keywords.

    JEL classification:

    • 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
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)

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