Abstract
In the last decade, the Extractive Industries Transparency Initiative (EITI) has grown in both popularity and influence. The ascendance of EITI is surprising because traditionally, leaders of resource-rich states prefer to tightly control their extractive industries. This paper investigates the underlying causes of EITI membership in order to understand its acceptance, even among some of the most authoritarian regimes. The paper argues that leaders of resource-rich countries use the EITI to consolidate their international prestige as eager reformers, which serves to both maintain and lure foreign investment. The cross-national and interrupted time series analyses reveal that EITI members not only have higher FDI levels compared to non-members, but these investments increase once countries join the initiative.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.