EVENT:

On October 24th, 2017, the AidData-hosted event, Tyranny of Averages: Are we worsening inequality within countries?, brought together Amanda Glassman (CGD), Caroline Heider (World Bank), Selim Jahan (UNDP), Kevin Croke (World Bank), Bradley C. Parks (AidData) and Samantha Custer (AidData) for an engaging panel discussion on issues of inequality and aid targeting addressed by the report. Watch the recording or read a summary of the remarks.

AidData Working Paper

Natural Resource Sector FDI and Growth in Post-Conflict Settings: Subnational Evidence from Liberia

Date Published

Feb 1, 2017

Authors

Jonas B. Bunte, Harsh Desai, Kanio Gbala, Brad Parks, Daniel Miller Runfola

Publisher

Citation

Bunte, Jonas B., Harsh Desai, Kanio Gbala, Bradley C. Parks, Daniel Miller Runfola. 2017. Natural Resource Sector FDI and Growth in Post-Conflict Settings: Subnational Evidence from Liberia. AidData Working Paper #34. Williamsburg, VA: AidData. Accessed at http://aiddata.org/working-papers.

Update: A revised version of this paper has been published in World Development.

AidData Working Paper

Natural Resource Sector FDI and Growth in Post-Conflict Settings: Subnational Evidence from Liberia

Date Published

Feb 1, 2017

Authors

Jonas B. Bunte, Harsh Desai, Kanio Gbala, Brad Parks, Daniel Miller Runfola

Citation

Bunte, Jonas B., Harsh Desai, Kanio Gbala, Bradley C. Parks, Daniel Miller Runfola. 2017. Natural Resource Sector FDI and Growth in Post-Conflict Settings: Subnational Evidence from Liberia. AidData Working Paper #34. Williamsburg, VA: AidData. Accessed at http://aiddata.org/working-papers.

The Ellen Johnson-Sirleaf administration, which came to power in 2006 after the end of a nearly fifteen year civil war, has made foreign direct investment (FDI) the centerpiece of its growth and development strategy. However, unlike other governments that have sought to benefit from FDI through technology and knowledge transfers, the Liberian authorities have pursued a strategy of requiring that investors provide public goods in specific geographic areas. It is not clear if this strategy, which is designed to set in motion agglomeration processes, improves local economic growth outcomes. This paper presents first-of-its kind, quasi-experimental evidence on the economic impacts of natural resource sector FDI. We first construct a new dataset of more than 550 sub-nationally georeferenced natural resource concessions that the Liberian government granted to investors between 2004 and 2015 (Liberia Concessions Geocoded Research Release, Version 1.0; for the associated methodology, see An Open-Source Methodology for Tracking Natural Resource Concessions in Liberia: Version 1.0). We then merge these georeferenced investment data with survey- and satellite-based outcome and covariate data at the 1km x 1km grid cell level. We use remotely sensed data on nighttime light to measure local economic growth and propensity score matching methods to compare growth in otherwise similar locations with and without FDI. Our results suggest that, in general, natural resource concessions improve local economic growth outcomes. However, there is important variation across different types of concessions and concessionaires. Mining concessions outperform agricultural concessions, and concessions granted to Chinese investors outperform concessions granted to U.S. investors.

Tags
Available on GeoQuery
TUFF
Geocoded
SDG Coded
Natural Resource Concessions
Survey Results
Metadata
Publication Date
Oct 2016
Starting Year:
2004
Ending Year:
2015
Number of Entries:
557
File Size:

This first-of-its-kind geocoded dataset contains all known natural resource concessions granted to investors in Liberia from 2004 to 2015, categorized on 43 different dimensions. The release contains 557 concession licenses sourced from both official systems and transparency initiatives in Liberia, along with additional information collected using AidData's TUFF open-source data collection methodology.