We examine how foreign corruption regulation affects the economic
benefits communities receive from extraction activities in resource-rich areas
of Africa. After a mid-2000s increase
in US Foreign Corrupt Practices Act (FCPA) enforcement, nighttime luminosity increases
by 15% (5%) in communities within a 10-(25-) kilometer radius of affected extraction
facilities. Cash-wage employment increases by 22%, suggesting that the economic
benefits are not limited to electricity access. Consistent with foreign
corruption regulation mitigating the political resource curse, we find that
perceived corruption decreases and that the pass-through from global commodity
prices to luminosity increases following the rise in FCPA enforcement.
Resource Extraction Facilities in Africa (i.e., mines and oil wells)
.