An assessment of the Extractive Industries Transparency Initiative (EITI) using the Bayesian Corruption Indicator. (10th October 2022)

• Record Type: Journal Article
• Authors: Fenton Villar, Paul
• Is Part Of: Environment and development economics. Volume 27:Number 5(2022)
• Page Start: 414
• Page End: 435
• Publication Date: 2022-10-10
• Subjects: corruption -- EITI -- extractive industries -- natural resource management -- transparency; O13 -- Q32 -- Q38 -- D73; Economic development -- Environmental aspects; 330.9
• DOI: 10.1017/S1355770X21000383
• Languages: English
• ISSNs: 1355-770X

Abstract

Abstract: Advocated across the international community for more than 15 years, the Extractive Industries Transparency Initiative (EITI) is now widely recognised as a hallmark anti-corruption scheme in the extractive sector. This study presents an assessment of the relationship between EITI membership and countries' progress in tackling corruption. It provides the first study that looks at this issue using a 'state-of-the-art' indicator called the Bayesian Corruption Indicator. It also introduces an innovative estimation strategy combining entropy balancing with a difference-in-difference framework to address the baseline inequalities that exist between member and non-member countries. Contrary to the findings of many leading studies, this analysis finds corruption scores have improved significantly among EITI member countries. In particular, the evidence is strongest when we examine a sub-group of EITI members designated fully compliant with the initiative's transparency standards.