Gold Exploitation and Socioeconomic Outcomes: The Case of Burkina Faso
This paper investigates how the gold boom that started in 2007 has affected socioeconomic outcomes in Burkina Faso. A simple theoretical model was developed to show the expected impacts, and these were validated by an empirical analysis. Results suggest that areas hosting gold extraction have better average living standards in terms of headcount ratios, poverty gaps and household expenditures than their counterparts who do not live in such areas. However, this can increase inequality and child labor, and therefore, raises the growing need of governmental interventions to reverse such negative impacts.