Regional Redistribution of Mineral Resource Wealth in Africa

40 Pages Posted: 7 Apr 2021

See all articles by Zareh Asatryan

Zareh Asatryan

ZEW – Leibniz Centre for European Economic Research

Thushyanthan Baskaran

University of Siegen - Department of Economics

Carlo Birkholz

ZEW – Leibniz Centre for European Economic Research

Patrick Hufschmidt

University of Siegen

Date Written: 2021

Abstract

We study the economic implications of mineral resource activity for non-mining regions at the grid-level across the African continent. We find that capital cities benefit from mineral resource activity anywhere in the country. Leaders’ birth regions also benefit, but only in autocratic regimes. Generic non-mining regions, on the other hand, are worse off. These results suggest that regional redistribution of resource rents in Africa is primarily undertaken to the benefit of capital cities and leaders’ birth regions. In contrast, non-mining regions do not appear to be sufficiently compensated for the negative spillovers they may face due to mining activity elsewhere in the country.

Keywords: Mineral resources, spillovers, spatiality, luminosity, favoritism, democracy, Africa

JEL Classification: H77, O13, R12

Suggested Citation

Asatryan, Zareh and Baskaran, Thushyanthan and Birkholz, Carlo and Hufschmidt, Patrick, Regional Redistribution of Mineral Resource Wealth in Africa (2021). ZEW - Centre for European Economic Research Discussion Paper No. 21-032, Available at SSRN: https://ssrn.com/abstract=3820533 or http://dx.doi.org/10.2139/ssrn.3820533

Zareh Asatryan (Contact Author)

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

Thushyanthan Baskaran

University of Siegen - Department of Economics ( email )

Department of Economics
Hoelderlinstr. 3
Siegen, 57068
Germany

Carlo Birkholz

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

Patrick Hufschmidt

University of Siegen ( email )

Hoelderlinstrasse 3
57068 Siegen, NRW 57068
Germany

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