RESOURCE CURSE AND THE EITI MEMBERSHIP EFFECT ON THE ECONOMIC GROWTH AND CORRUPTION IN SUB-SAHARAN AFRICA: PART I - A THEORETICAL REVIEW

This study reviews the theoretical literature concerning the resource curse as it pertains to the impact of natural resources upon economic growth and corruption in sub-Saharan Africa (SSA), and how the Extractive Industries Transparency Initiative (EITI) membership can be of help. The EITI is an international standard promoting open and transparent resource governance through disclosure mechanisms in the resource value chain. Corruption has been associated with less-than-average economic growth in resource-rich countries. This research concludes that the theoretical review found that through the dissemination of disclosures in the natural resource sector, the EITI can potentially reduce the prevalence of corruption in implementing countries in SSA and it can address negative economic growth outcomes associated with resource abundance. However, there is not much evidence empirically needed to suggest this.