The demand for transparency: An empirical note

By encouraging socially wasteful rent seeking and corruption, natural resources abundance might not be a blessing but a country’s curse. A recent attempt to impede these practices of corruption with theft is the Extractive Industries Transparency Initiative (EITI). The purpose of this organization is to verify and fully publish company payments and government revenues from oil, gas, and mining. Using a probit estimation technique the paper analyses empirically the political and socio-economic factors which determine a country’s participation in EITI, which can be interpreted as revealed willingness to reform.