Benefit of Extractive Industry Transparency Initiative (EITI) on the mineral dependent economies.

Bodunrin, Olalekan Samuel (2016): Benefit of Extractive Industry Transparency Initiative (EITI) on the mineral dependent economies.

Abstract

The EITI is a standard for countries with oil, gas and minerals, it requires all companies extracting oil, gas and minerals to publish what they pay in taxes and royalties and the government also publish what it receives, including other key information about the sector (EITI, 2016). These mineral dependent economies generate at least 8 % of GDP and 40 % of export earnings from the mineral (Auty, 1993). The lack of accountability and efficient management of these resources has led to political unrest, poverty on a larger scale and by extension severe macroeconomic issues thereby impacting negatively on growth and development. The study assessed the wellbeing of countries before and after implementing EITI requirements. It found out that EITI did not help countries diversify their revenue base but its aid them utilize their resources efficiently, as the performance of the manufacturing sector fell with increased mineral rents.

• Item Type: MPRA Paper
• Language: English
• Keywords: EITI, Mineral dependence
• Subjects: Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q3 - Nonrenewable Resources and Conservation > Q34 - Natural Resources and Domestic and International Conflicts

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