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Natural Resources and the Public’s Political Trust

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  • Patricia Agyapong

Abstract

Do natural resources affect public trust in political leaders and institutions? In this study, I use a difference-in-differences approach to investigate this question, focusing on Ghana’s discovery of high-grade offshore oil in 2007. I find that individuals living close to the oil fields became less trusting of political leaders and institutions after the discovery. The findings suggest that the oil discovery’s impact on political trust varies depending on pre-existing social and economic condi¬tions such as educational status, employment status and the level of media exposure. Additionally, individuals located near the oil fields reported more negative views about Ghana’s democracy, corruption, government performance, and economic conditions. The results suggest a potential link between increased bribe payments in these locations and declining trust.

Suggested Citation

  • Patricia Agyapong, 2026. "Natural Resources and the Public’s Political Trust," CSAE Working Paper Series 2026-03, Centre for the Study of African Economies, University of Oxford.
    • Handle: RePEc:csa:wpaper:2026-03
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • 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)
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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