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.
