Reversing the Resource Curse: Foreign Corruption Regulation and Economic Development
70 Pages Posted: 2 Dec 2020 Last revised: 19 Dec 2020
Hans Bonde Christensen
University of Chicago - Booth School of Business
Mark G. Maffett
University of Chicago - Booth School of Business
Thomas Rauter
University of Chicago - Booth School of Business
Date Written: December 18, 2020
Abstract
We examine whether foreign corruption regulation reduces corruption and increases the local economic benefits of resource extraction. After a mid-2000s increase in enforcement of the US Foreign Corrupt Practices Act (FCPA), economic activity (measured by nighttime luminosity) increases by 14% (3%) in African communities within a 10- (25-) kilometer radius of resource extraction facilities whose owners are subject to the FCPA. Local perceptions of corruption decline by 8%. Consistent with changes in existing extraction firms’ business practices contributing to the increase in development, the association between resource production, instrumented by world commodity prices, and local economic activity increases by 40%.
Keywords: Foreign Corruption Regulation; Foreign Corrupt Practices Act (FCPA); Economic Development; Natural Resource Extraction
JEL Classification: F50; F60; K2; M4; O1
Suggested Citation: Suggested Citation
Hans Bonde Christensen

University of Chicago - Booth School of Business ( email )
5807 South Woodlawn Avenue
Chicago, IL 60637
United States
Mark G. Maffett (Contact Author)

University of Chicago - Booth School of Business ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
Thomas Rauter

University of Chicago - Booth School of Business ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
Do you have a job opening that you would like to promote on SSRN?
Related eJournals
-
Financial Accounting eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS2,540PAPERS17,289This Journal is curated by:Ross L. Watts at Massachusetts Institute of Technology (MIT) - Sloan School of Management -
S&P Global Market Intelligence Research Paper Series
S&P Global Market Intelligence Research Paper Series
Subscribe to this free journal for more curated articles on this topic
FOLLOWERS2,450PAPERS32,813 -
Corporate Finance: Governance, Corporate Control & Organization eJournal
Corporate Finance: Governance, Corporate Control & Organization eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS2,070PAPERS30,544This Journal is curated by:René M. Stulz at Ohio State University (OSU) - Department of Finance -
Corporate Law: Corporate & Financial Law: Interdisciplinary Approaches eJournal
Corporate Law: Corporate & Financial Law: Interdisciplinary Approaches eJournal
Subscribe to this free journal for more curated articles on this topic
FOLLOWERS1,752PAPERS4,436This Journal is curated by:James A. Fanto at Brooklyn Law School and Co-Director of the Center for the Study of Business Law & Regulation -
Accounting, Corporate Governance, Law & Institutions eJournal
Accounting, Corporate Governance, Law & Institutions eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS1,280PAPERS8,173This Journal is curated by:Vernon J. Richardson at University of Arkansas at Fayetteville -
Corporate Law: Securities Law eJournal
Corporate Law: Securities Law eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS960PAPERS6,537This Journal is curated by:Bernard S. Black at Northwestern University - Pritzker School of Law -
International Accounting eJournal
International Accounting eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS875PAPERS3,111 -
Emerging Markets: Finance eJournal
Emerging Markets: Finance eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS762PAPERS15,920This Journal is curated by:Erik Berglöf at Institute of Global Affairs, London School of Economics and Political Science -
IO: Regulation, Antitrust & Privatization eJournal
IO: Regulation, Antitrust & Privatization eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS611PAPERS21,077 -
Empirical Studies eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS597PAPERS8,315 -
International Corporate Finance eJournal
International Corporate Finance eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS581PAPERS7,947This Journal is curated by:René M. Stulz at Ohio State University (OSU) - Department of Finance -
Law, Institutions & Development eJournal
Law, Institutions & Development eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS564PAPERS6,577This Journal is curated by:Katharina Pistor at Columbia University School of Law, Kevin E. Davis at New York University School of Law -
Sustainability & Economics eJournal
Sustainability & Economics eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS520PAPERS27,485 -
Development Economics: Microeconomic Issues in Developing Economies eJournal
Development Economics: Microeconomic Issues in Developing Economies eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS487PAPERS12,758 -
Development Economics: Macroeconomic Issues in Developing Economies eJournal
Development Economics: Macroeconomic Issues in Developing Economies eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS467PAPERS24,628 -
Development Economics: Agriculture, Natural Resources, & Environmental Impact eJournal
Development Economics: Agriculture, Natural Resources, & Environmental Impact eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS460PAPERS10,005 -
Microeconomics: Welfare Economics & Collective Decision-Making eJournal
Microeconomics: Welfare Economics & Collective Decision-Making eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS458PAPERS16,230 -
Corporate Social Responsibility (CSR) eJournal
Corporate Social Responsibility (CSR) eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS448PAPERS11,664This Journal is curated by:Timothy M. Devinney at University of Manchester - Alliance Manchester Business School -
Econometric Modeling: Agriculture, Natural Resources & Environmental Economics eJournal
Econometric Modeling: Agriculture, Natural Resources & Environmental Economics eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS444PAPERS5,940 -
Economic Growth eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS369PAPERS14,402This Journal is curated by:William Easterly at New York University - Department of Economics -
Global Commodity Issues eJournal
Global Commodity Issues eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS359PAPERS1,485 -
Institutions & Transition Economics: Political Economy eJournal
Institutions & Transition Economics: Political Economy eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS338PAPERS4,857This Journal is curated by:Erik Berglöf at Institute of Global Affairs, London School of Economics and Political Science -
Corporate Governance & Finance eJournal
Corporate Governance & Finance eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS334PAPERS13,450This Journal is curated by:Lucian A. Bebchuk at Harvard Law School -
Emerging Markets Economics: Firm Behavior & Microeconomic Issues eJournal
Emerging Markets Economics: Firm Behavior & Microeconomic Issues eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS254PAPERS6,021This Journal is curated by:Erik Berglöf at Institute of Global Affairs, London School of Economics and Political Science -
Law, International Affairs & CSR eJournal
Law, International Affairs & CSR eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS251PAPERS13,069This Journal is curated by:Timothy M. Devinney at University of Manchester - Alliance Manchester Business School -
Natural Resources Law & Policy eJournal
Natural Resources Law & Policy eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS231PAPERS4,683This Journal is curated by:Jennifer Rushlow at Vermont Law School - Environmental Law Center -
Corporate Governance: Social Responsibility & Social Impact eJournal
Corporate Governance: Social Responsibility & Social Impact eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS196PAPERS5,070This Journal is curated by:Lucian A. Bebchuk at Harvard Law School, Marc J Epstein at Rice University - Jesse H. Jones Graduate School of Business, Geoffrey M. Heal at Columbia Business School - Finance and Economics, Donald John Roberts at Stanford Graduate School of Business -
Political Economy - Development: International Development Efforts & Strategies eJournal
Political Economy - Development: International Development Efforts & Strategies eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS44PAPERS5,455 -
Political Economy - Development: Underdevelopment & Poverty eJournal
Political Economy - Development: Underdevelopment & Poverty eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS44PAPERS3,693
