Natural Resource Discoveries, Citizen Expectations and Household Decisions

Major oil and gas discoveries are often associated with excitement and jubilation among citizens and government officials. But the extent to which discoveries substantially alter citizen expectations about economic conditions in a country remains a...

Full description

Bibliographic Details
Main Authors: Cust, James, Mensah, Justice Tei
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2020
Subjects:
Online Access:http://documents.worldbank.org/curated/en/796881598889032254/Natural-Resource-Discoveries-Citizen-Expectations-and-Household-Decisions
http://hdl.handle.net/10986/34420
id okr-10986-34420
recordtype oai_dc
spelling okr-10986-344202022-09-20T00:11:42Z Natural Resource Discoveries, Citizen Expectations and Household Decisions Cust, James Mensah, Justice Tei EXPECTATIONS CITIZEN ENGAGEMENT HOUSEHOLD DECISIONS NATURAL RESOURCES OIL DISCOVERIES RESOURCE CURSE OIL AND GAS INTERNATIONAL MIGRATION Major oil and gas discoveries are often associated with excitement and jubilation among citizens and government officials. But the extent to which discoveries substantially alter citizen expectations about economic conditions in a country remains an open question. The paper combines Afrobarometer data on household expectations on economic conditions and living standards with the announcement of oil and gas discoveries in Africa to estimate the effect of discoveries on expectations. The identification strategy exploits plausibly exogenous variation in the timing of discoveries relative to the rollout of survey interviews. The study find that discoveries increase expectations of better economic conditions and living standards by 35 and 52 percent respectively. Further, the paper finds that the overall expectations boom effect pertains only to countries with weaker institutions. The paper also provides evidence that households incorporate these expectations into their migration and fertility decisions, with fewer applications in the short run to the U.S. green card lottery and increased childbirth following discovery announcements. 2020-09-03T14:27:17Z 2020-09-03T14:27:17Z 2020-08 Working Paper http://documents.worldbank.org/curated/en/796881598889032254/Natural-Resource-Discoveries-Citizen-Expectations-and-Household-Decisions http://hdl.handle.net/10986/34420 English Policy Research Working Paper;No. 9372 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Sub-Saharan Africa
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic EXPECTATIONS
CITIZEN ENGAGEMENT
HOUSEHOLD DECISIONS
NATURAL RESOURCES
OIL DISCOVERIES
RESOURCE CURSE
OIL AND GAS
INTERNATIONAL MIGRATION
spellingShingle EXPECTATIONS
CITIZEN ENGAGEMENT
HOUSEHOLD DECISIONS
NATURAL RESOURCES
OIL DISCOVERIES
RESOURCE CURSE
OIL AND GAS
INTERNATIONAL MIGRATION
Cust, James
Mensah, Justice Tei
Natural Resource Discoveries, Citizen Expectations and Household Decisions
geographic_facet Africa
Sub-Saharan Africa
relation Policy Research Working Paper;No. 9372
description Major oil and gas discoveries are often associated with excitement and jubilation among citizens and government officials. But the extent to which discoveries substantially alter citizen expectations about economic conditions in a country remains an open question. The paper combines Afrobarometer data on household expectations on economic conditions and living standards with the announcement of oil and gas discoveries in Africa to estimate the effect of discoveries on expectations. The identification strategy exploits plausibly exogenous variation in the timing of discoveries relative to the rollout of survey interviews. The study find that discoveries increase expectations of better economic conditions and living standards by 35 and 52 percent respectively. Further, the paper finds that the overall expectations boom effect pertains only to countries with weaker institutions. The paper also provides evidence that households incorporate these expectations into their migration and fertility decisions, with fewer applications in the short run to the U.S. green card lottery and increased childbirth following discovery announcements.
format Working Paper
author Cust, James
Mensah, Justice Tei
author_facet Cust, James
Mensah, Justice Tei
author_sort Cust, James
title Natural Resource Discoveries, Citizen Expectations and Household Decisions
title_short Natural Resource Discoveries, Citizen Expectations and Household Decisions
title_full Natural Resource Discoveries, Citizen Expectations and Household Decisions
title_fullStr Natural Resource Discoveries, Citizen Expectations and Household Decisions
title_full_unstemmed Natural Resource Discoveries, Citizen Expectations and Household Decisions
title_sort natural resource discoveries, citizen expectations and household decisions
publisher World Bank, Washington, DC
publishDate 2020
url http://documents.worldbank.org/curated/en/796881598889032254/Natural-Resource-Discoveries-Citizen-Expectations-and-Household-Decisions
http://hdl.handle.net/10986/34420
_version_ 1764480860162097152