Worth its weight in gold
Is the extractive industries transparency initiative a credible signalling mechanism to investors
Bibliographic Data
| ID | 21690926 |
|---|---|
| Authors | Jamie Fraser (0000-0001-5486-4224, Graduate Institute of International and Development Studies, corresponding author) |
| Year | 2022 |
| Volume | 27 |
| Issue | 5 |
| Pages | 436-450 |
| Publication date | 2022-10-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Environment and Development Economics (JOURNAL) |
| Journal identifiers | ISSN: 1355-770X • E-ISSN: 1469-4395 |
| Publisher | Cambridge University Press (CUP) (PUBLISHER) |
| DOI | 10.1017/s1355770x21000358 |
| OpenAlex | W3214357299 |
| Language | EN |
| Citations received | 2 |
| References cited | 22 |
This paper seeks to understand the link between resource governance and investor expectations in resource-rich countries. We test whether voluntary membership in the Extractive Industries Transparency Initiative (EITI), a public-private partnership that promotes transparency and accountability in the extractives sector, behaves as a credible signalling mechanism to investors that governments in resource-rich countries can manage resource revenue and adhere to sustainable fiscal policies in the medium and long run. Using an interrupted time series analysis coupled with a fixed effects model, we examine whether investor expectations on the price of sovereign debt behave as a credible signalling mechanism in the presence of certain conditions. Results indicate that in some cases there is a significant change in spread on the default price of sovereign debt as a result of announcement of either EITI candidacy or EITI compliance. However, it is clear that EITI membership alone is not a sufficient signal to investors that a country can effectively manage its resource revenues in the long run because the result of EITI implementation is heavily influenced by country-specific conditions
Business · Debt · Economics · Financial system · International economics · Market economy · Monetary economics · Revenue · Sovereign wealth fund · Fiscal Policy and Economic Growth · Natural Resources and Economic Development · State Capitalism and Financial Governance · Finance
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Transparent autocracies
Energy Governance, Transnational Rules, and the Resource Curse
| Citations per year | 1 |
|---|---|
| Citation span | 2024 - 2024 (1) |
| Highly cited | No |