Natural resource and economic growth nexus in Nigeria: a disaggregated approach

Inuwa, Nasiru; Adamu, Sagir; Sani, Mohammed Bello; Modibbo, Haruna Usman

doi:10.1007/s12076-021-00291-4

Cited by 49 publications

(3 citation statements)

References 46 publications

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“…Scholars are still trying to answer the question whether natural resources serve as a blessing or a curse for a nation, and a more recent evidence shows that it could be a curse or a blessing depending on the natural resource type (Inuwa et al 2022). One of the strengths of the literature is the ongoing debate between scholars, which plays a significant role in refining the literature and moving it towards more credible results.…”

Section: Discussionmentioning

confidence: 99%

The Natural Resource Curse: Is It Really a Curse?

Algharabali

Al‐Thaqeb

2023

IJEEP

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The Natural Resource Curse literature started with a clear consensus that dependence on natural resources have clear direct negative effects on economic growth and levels of democracy. However, the literature today reflects that the debate is still going where several papers reflects evidence that is against the consensus of the Natural Resource Curse hypothesis, which provides many open avenues for further research. This paper surveys the literature of the natural resource curse and identifies the main arguments and findings of both streams (curse stream and blessing stream). The main point that this paper highlights is that the literature is still not clear 100% whether the natural resource is a curse or a blessing. The econometric technique and the way how you define natural resources could lead to different or opposite results.

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Section: Discussionmentioning

confidence: 99%

The Natural Resource Curse: Is It Really a Curse?

Algharabali

Al‐Thaqeb

2023

IJEEP

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“…It was determined by Asiedu et al [81] that FDI has a significant impact on the relationship between the peak in coal rent and GDP growth. The correlation between natural resource rent (such as natural gas and coal rent) and economic expansion was calculated by Inuwa et al [82]. Investment in coal rent increases GDP considerably, and banking sector investment increases GDP even more.…”

Section: Resultsmentioning

confidence: 99%

The Economic Value of Natural Resources and Its Implications for Pakistan’s Economic Growth

et al. 2022

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Natural resources and ecological services provide the foundation for manufactured capital, increasing public financing and decreasing inequality by diversifying the economy. The exploitation of natural resources is frequently the backbone of economic stability in developing and middle-income nations. As a result of their importance, natural resources need vigilant and long-term management. Recent research has tested two hypotheses, the natural resource blessing hypothesis and the natural resource curse hypothesis, on the impact of a country’s natural resources on its economy. This research is an essential contribution to the growing body of work that attempts to quantify natural resource endowments’ role in national economic growth. Investigations focus on Pakistan and span the years 1975 through 2020. Robust Least Square (RLS) estimations show that coal rents, energy use, inbound FDI, and oil rents contribute to a country’s economic growth. While consumption of renewable energy sources and industrial value-added have a detrimental effect. Natural resources, foreign direct investment, energy consumption, and industrial ecology are predicted to significantly impact economic growth during the next decade, according to the Impulse Response Function (IRF) and the Variance Decomposition Analysis (VDA). The findings may provide helpful information for academic and governmental institutions to develop natural resource management policies for sustainable development.

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“…According to [4], abundant natural capital curtails growth prospects for most developing economies. Another recent wave of evidence reinforced this claim by suggesting that over-reliance on NRs stifles economic growth potentials, effectively turning resource endowments into a curse [5][6][7][8]. On the other hand, a great deal of research has refuted the resource curse concept.…”

Section: Introductionmentioning

confidence: 99%

Can the Resource Curse for Well-Being Be Morphed into a Blessing? Investigating the Moderating Role of Environmental Quality, Governance, and Human Capital

ElMassah

Hassanein

2022

Sustainability

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One of the most pressing global concerns is ensuring high levels of human well-being without overburdening natural resources. The impact of natural resource abundance on the economy’s monetary dimensions has long been controversial, with researchers debating whether it is a blessing or a curse. Recently, focus has shifted to its impact on non-monetary attributes (i.e., human well-being), with conflicting empirical evidence with respect to existence of the resource curse. However, studies on the indirect impact of natural resources on well-being are rare. This inquiry extends previous research by investigating the effect of natural resource abundance on human well-being and the underlying mechanisms that may clarify the convoluted link between the two variables in the UAE from 1990 to 2019. The novel contribution of this research is the evaluation of the resource curse concept from a broader perspective by considering how resource endowments indirectly affect human well-being via environmental quality, human capital, and governance channels. To this end, in the present study, we utilized the autoregressive distributed lag (ARDL) technique for cointegration and deployed the vector error correction model (VECM) for causality investigation. The ARDL results indicate cointegrated variables with diverse integration orders, signifying a long-term bond. Furthermore, the outcomes endorse the notion that resource endowment is inversely related to well-being as calibrated by the Human Development Index (HDI), corroborating the “Resource Curse Concept”, whereby large resource endowments impede human well-being. In terms of transmission channels, natural resources improve human well-being through environmental quality. In contrast, both human capital and governance have insignificant impacts on the influence of natural resources on well-being. Therefore, resource endowments improve human well-being as long as they do not harm the environment. The present analysis also resulted in the development of a feedback hypothesis between natural resource endowments and human well-being. The findings of this study provide several insights into the control of the direct and indirect adverse effects of natural resources on human well-being, the foremost being the provision of incentives for low-carbon energy use, reducing energy intensity, and assisting businesses engaged in R&D to minimize the cost of employing renewables, as well as investments in low-carbon technologies/cleantech and environmental technologies.

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Natural resource and economic growth nexus in Nigeria: a disaggregated approach

Cited by 49 publications

References 46 publications

The Natural Resource Curse: Is It Really a Curse?

The Natural Resource Curse: Is It Really a Curse?

The Economic Value of Natural Resources and Its Implications for Pakistan’s Economic Growth

Can the Resource Curse for Well-Being Be Morphed into a Blessing? Investigating the Moderating Role of Environmental Quality, Governance, and Human Capital

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