Natural resource abundance, institutions and economic growth in Africa

Oyinlola, Mutiu Abimbola; Adeniyi, Oluwatosin; Raheem, Ibrahim D.

doi:10.1504/ajesd.2015.068513

Cited by 26 publications

(23 citation statements)

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“…However, this negative effect is not unanimously accepted. An increasing number of studies, among them Davis (), Wright and Czelusta (), Stijns (), Lederman and Maloney (), Brunnschweiler (), Brunnschweiler and Bulte (), Alexeev and Conrad (), Kropf (), Canuto and Cavallari (), Oyinlola, Adeniyi, and Raheem () provide substantial evidence against the validity of natural resource curse. Some studies, such as Brunnschweiler (), Brunnschweiler and Bulte (), Alexeev and Conrad (), Cavalcanti, Mohaddes, and Raissi (), Hannan and Mohsin () even show that there is a positive relationship between the resource abundance and growth.…”

Section: Literature Reviewmentioning

confidence: 99%

Curse or Blessing? An Empirical Re‐examination of Natural Resource‐Growth Nexus

Yanıkkaya

Turan

2018

J of Intl Development

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This study re‐examines the natural resource abundance‐growth nexus for a large sample of countries. Our findings indicate that total resource, coal, mineral, natural gas and oil rents have significantly positive effects on growth while forest rents have negative effects. While estimation results show that coal and mineral rents raise growth for resource poor countries, natural gas and oil rents (forest rents) raise (lower) growth for resource‐rich countries. Overall, our results fail to support the natural resource curse hypothesis. On the contrary, we can conclude that, except for forest rents, resource rents appear to be a blessing rather than a curse. Copyright © 2018 John Wiley & Sons, Ltd.

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Section: Literature Reviewmentioning

confidence: 99%

Curse or Blessing? An Empirical Re‐examination of Natural Resource‐Growth Nexus

Yanıkkaya

Turan

2018

J of Intl Development

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“…Gasimov [9] used a regression model to analyze the impacts on economy, society and policy of petroleum resources in Azerbaijan. Oyinlola et al [38] used a regression model to study the relationship between natural resources and economic growth in Africa. Wang et al [39] used the regression model to study the resource curse effect and transmission mechanism in the western region of China.…”

Section: Resource Curse Coefficientmentioning

confidence: 99%

Research on Resource Curse Effect of Resource-Dependent Cities: Case Study of Qingyang, Jinchang and Baiyin in China

Wang

Peng

et al. 2018

Sustainability

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For a specific small-scale region with abundant resources, its copious resources tend to dictate the basic direction of its development, and may subsequently give rise to an industrial structure centered on the advantageous resources. This can give rise to an economic structure that lacks diversity, causing the economic development in the entire local region to fall into the dilemma of the resource curse. The present study conducts a case study from the perspective of small-scale regions, incorporating various types of resource-dependent cities in China, including Qingyang, Jinchang, and Baiyin, to interpret and analyze the resource curse effect by calculating a resource curse coefficient. Moreover, based on the regression model, the present study further discusses the empirical relations associated with the resource curse phenomenon. The results show that, regardless of whether a resource-dependent city is in the early, intermediate or late stage of its resource development, economic development is always plagued by the resource curse effect to a certain degree. Resource development cannot promote economic development, rather, it inhibits economic growth to some extent, resulting in an array of effects that are unfavorable to economic development, rendering the development unsustainable. For different types of resource-dependent cities, resource curse effect exhibits distinct characteristics. The resource curse effect is strongest for a resource-dependent city during an economic recession, is less severe during a development period, and is weakest during maturation. Resource development not only has a direct adverse impact on economic growth, but also often affects economic growth in multiple ways and on various levels through the Dutch disease effect, the crowding out effect, and the institution weakening effect. Until now, most results show that there is no obvious resource curse effect at the national and provincial level. The verification results of small-scale regions show that the resource curse effect at the city level still exists. In addition, the resource curse effect differs across different types of resource-dependent cities.

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“…This makes it difficult to conduct macroeconomic stabilization policies. The long run challenge relates to the ample evidences that have shown that resource-endowed countries tend to have slower economic growth rate as compared with resource-scarce countries (Frankel 2012;Oyinlola et al 2015;Arezki and Nabli 2012). This strand of the literature is referred to as ''Resource Curse Hypothesis'' (RCH), a coinage attributed to Sachs and Warner (1995).…”

Section: Introductionmentioning

confidence: 99%

Inclusive growth, human capital development and natural resource rent in SSA

Raheem

Isah

Adedeji

2016

Econ Change Restruct

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This paper seeks to achieve two objectives. First, we argued for the increase in government expenditure on education and health to examine the possibility of achieving inclusive growth. Second, financing gap model was employed to estimate the potential growth in GDP per capita that is accruable to the economy if government use natural resource rent to finance increase in expenditure of education and health. Relying on dataset for 18 SSA countries, among the results obtained showed that both government expenditures are found to be significant for explaining growth in SSA. However, augmenting health expenditure with natural resource appears to be more significant for making growth process inclusive. Also, the results of the simulation exercise indicate that increasing government expenditure on health would increase GDP per capita growth by over 3.1 %. The policy implication of this is drawn based upon the results obtained.

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Natural resource abundance, institutions and economic growth in Africa

Cited by 26 publications

References 0 publications

Curse or Blessing? An Empirical Re‐examination of Natural Resource‐Growth Nexus

Curse or Blessing? An Empirical Re‐examination of Natural Resource‐Growth Nexus

Research on Resource Curse Effect of Resource-Dependent Cities: Case Study of Qingyang, Jinchang and Baiyin in China

Inclusive growth, human capital development and natural resource rent in SSA

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