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
Here is the Coronavirus
related research on SSRN
Related eJournals
-
Financial Accounting eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS2,533PAPERS17,170This 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
FOLLOWERS2,439PAPERS32,597 -
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
FOLLOWERS2,063PAPERS30,324This 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
FOLLOWERS1,746PAPERS4,387This 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
FOLLOWERS1,271PAPERS8,081This 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
FOLLOWERS957PAPERS6,477This 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
FOLLOWERS869PAPERS3,098 -
Emerging Markets: Finance eJournal
Emerging Markets: Finance eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS758PAPERS15,728This 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
FOLLOWERS609PAPERS20,951 -
Empirical Studies eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS595PAPERS8,275 -
International Corporate Finance eJournal
International Corporate Finance eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS578PAPERS7,896This 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
FOLLOWERS562PAPERS6,480This Journal is curated by:Katharina Pistor at Columbia University School of Law, Kevin E. Davis at New York University School of Law -
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
FOLLOWERS488PAPERS12,624 -
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
FOLLOWERS467PAPERS24,482 -
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
FOLLOWERS460PAPERS9,951 -
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
FOLLOWERS458PAPERS16,121 -
Corporate Social Responsibility (CSR) eJournal
Corporate Social Responsibility (CSR) eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS447PAPERS11,578This 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
FOLLOWERS445PAPERS5,896 -
Economic Growth eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS369PAPERS14,330This 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
FOLLOWERS359PAPERS1,478 -
Institutions & Transition Economics: Political Economy eJournal
Institutions & Transition Economics: Political Economy eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS338PAPERS4,841This 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
FOLLOWERS332PAPERS13,339This 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
FOLLOWERS255PAPERS5,935This Journal is curated by:Erik Berglöf at Institute of Global Affairs, London School of Economics and Political Science -
Natural Resources Law & Policy eJournal
Natural Resources Law & Policy eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS229PAPERS4,646This 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
FOLLOWERS194PAPERS5,015This 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
FOLLOWERS44PAPERS5,425 -
Political Economy - Development: Underdevelopment & Poverty eJournal
Political Economy - Development: Underdevelopment & Poverty eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS44PAPERS3,663
