This study investigates the role of institutions in the relationship between natural resources and economic growth using a panel data of 44 African countries over the period 1996-2016. We use natural resource rents as a percentage of GDP and the share of ores and metals in total merchandise exports as variables for natural resources and six indicators of institutional quality. To check for endogenetity, heterogeneity and non-linearity we undertake a crosssectional instrumental variable analysis, a system dynamic panel-data instrumental variable regression and panel smooth transition regression. The relationship between natural resources on economic growth vary for indicators of institutional quality and the measure for natural resources. The non-linear relationship between natural resources and economic growth is significantly ameliorate when we consider the variables rule of law and regulations and quality for both natural resource rents as a percentage of GDP and the share of ores and metals to total export.

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This paper identifies and decomposes sources that explain household economic well‐being in Cameroon. It uses the 2001 and 2007 Cameroon Household Consumption Surveys, synthetic variables constructed by the multiple correspondence analysis and econometric approaches that correct for potential endogeneity and unobserved heterogeneity in a step‐wise manner and simultaneously. Sources of well‐being that explain poverty are then decomposed into growth and redistribution components. Variables that significantly explain household economic well‐being are education, health, household size, fraction of active household members, working in the formal sector and area of residence. Decomposition analysis shows that the growth components largely account for changes in deprivation in terms of each regressed‐income source. With the exception of the income source education, redistribution components slowed down progress in alleviating shortfall in other regressed‐income sources. These results have implications for public interventions that affect education and health for all, labour market participation and infrastructure development.

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This paper evaluates the impact of human capital endowments on measured inequality in Cameroon. We first estimate determinants of household economic well‐being (HEW) in which human capital endowments are considered as endogenous effort‐related regressors, while controlling for exogenous circumstance‐related variables. Second, we simulate alternative counterfactual distributions of HEW: one in which human capital endowments are equalized; and the other in which variations are entirely attributable to the unobservable terms. Finally we compare inequality in the factual distribution of household well‐being with inequality in each of the simulated distributions. Direct and indirect exogenous opportunity‐inducing circumstances are inequality‐augmenting, whereas human capital endowments are inequality‐reducing in the actual distribution. Education and health interventions will ameliorate well‐being and mitigate inequality. Thus, leveling the playing ground for individuals to have equitable exposure to education, health and labor market participation is required for a low‐income country like Cameroon to enhance equity and sustainable household economic growth.