Unveiling the Nexus : Impact of the Extractive Industries Transparency Initiative on Foreign Direct Investment

The Extractive Industries Transparency Initiative was originally conceived by Tony Blair in 2002 to improve the transparency and accountability of extractive industries in resource-rich economies. It is theorized that the added transparency will create an environment welcoming to foreign direct investment. To investigate this claim, this paper studies the impact of EITI on FDI using a panel dataset of 62 countries over 30 years. The results show that EITI significantly increases FDI by roughly 50% depending on the specification