This study investigated the impact of natural resources on economic growth among the Organization of the Petroleum Exporting Countries (OPEC) by controlling for institutional quality and financial development during the period 2008-2018. The study applied the recent generalised method of moment estimation method proposed by Kripfganz (2019, Generalized method of moments estimation of linear dynamic panel data models. London Stata Conference, pp. 1-128). The results revealed a negative and significant impact of natural resource rents on economic growth. However, oil rents showed a positive and statistically significant impact on economic growth. Similarly, institutional quality has been found to have positive and significant contribution to economic growth. Finally, financial development has also been found to have positive and significant impact on economic growth of the OPEC member countries.
Even though empirical evidence has shown that naturally endowed countries growth slower than their less naturally endowed counterparts, the scenario tagged as “resource curse hypothesis”, but it seems there are exceptions. Therefore, this study examines the confirmation or disputation of resource curse hypothesis among the West African Institutes for Financial and Economic Management (WAIFEM) member countries during the period 1986-2016. The study applied seemingly unrelated regression (SUR) and unraveled the strengthened effect of natural resources on output growth in Gambia, Ghana, and Sierra Leone. But, the study revealed a negative and statistically significant effect on economic growth in Liberia and Nigeria, thereby upholding the presence of resource curse hypothesis only in Liberia and Nigeria. Therefore, an overall “umbrella” policy recommendation inappropriate, but individually designed strategy that would help in managing the resources rents effectively in order to boost economic growth particularly in Liberia and Nigeria where their resource endowment serve as a curse rather than a blessing is recommended.
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