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What do we know about the sharing of mineral resource rent in Africa?

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  • Laporte, Bertrand
  • de Quatrebarbes, Céline

Abstract

Governments that lack the capacity to mine resources themselves have to attract foreign direct investment. However, since resources are not renewable, countries need to capture a ‘fair’ share of mineral resource rent to promote their development. While the sharp rise of the world prices of most minerals multiplied the total natural resources rents by 2.3 between 2002 and 2008 (World Bank, 2015), tax revenue earned by African governments from the non-renewable natural resource sector only grew by a factor of 1.5 (Mansour, 2014).The sharing of mineral resource rent between governments and investors is often criticised for being unfavourable to African governments. But what do we really know about the sharing of mineral resource rent in Africa? The aim of this study is to review theoretical and empirical studies on rent sharing in Africa and to note their limitations regarding knowledge of the actual sharing of mineral rent.

Suggested Citation

  • Laporte, Bertrand & de Quatrebarbes, Céline, 2015. "What do we know about the sharing of mineral resource rent in Africa?," Resources Policy, Elsevier, vol. 46(P2), pages 239-249.
  • Handle: RePEc:eee:jrpoli:v:46:y:2015:i:p2:p:239-249
    DOI: 10.1016/j.resourpol.2015.10.005
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    1. repec:eee:jrpoli:v:52:y:2017:i:c:p:72-80 is not listed on IDEAS
    2. repec:dug:journl:y:2017:i:1:p:34-44 is not listed on IDEAS
    3. repec:eee:crpeac:v:48:y:2017:i:c:p:53-81 is not listed on IDEAS

    More about this item

    Keywords

    Taxation; Mineral tax; Resource rent tax; Developing countries;

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels
    • L72 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Other Nonrenewable Resources
    • L78 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Government Policy

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