Does EITI prevent the natural resource curse in financial development?

The mismanagement of natural resources can compromise the efficiency of factors essential to economic development, commonly called the "resource curse". In addition to worsening the socio-economic situation, dependence on natural resources can hinder the emergence of an efficient financial system in countries with weak institutions. Conversely, good management of natural resources can enable low- and middle-income countries to improve their economic performance. We first describe the theoretical mechanisms underlying the existence of such a "resource curse" and then present empirical evidence of the potential mitigating effect fostered by implementing the Extractive Industries Transparency Initiative (EITI) standard.

Kinda H., Mien E. (2024) "Does EITI prevent the natural resource curse in financial development?", World Development, 179, 106603.