This paper investigates the resource curse in diamond exporting industry in African countries. The empirical evidence about the “resource curse” is mixed in literature and almost none has been done regarding diamond. Our study aims to bridge that gap. The results suggest that diamond export is positively correlated with well-being in a group of African countries. In other words, the “resource curse” may not occur in diamond mining industry after the Kimberly Process (KP) was put in place in 2002. We argue that the KP serves as a good institution and has created good incentives for firms in the industry. In return, these firms may have created better jobs and increased well-being in these countries.
The author is thankful for continuous support and critical advice from Dr. Tuan V. Le.
"Is Diamond a Resource Curse for Africa?,"
Undergraduate Economic Review: Vol. 16:
1, Article 7.
Available at: https://digitalcommons.iwu.edu/uer/vol16/iss1/7