Sustainable Development and Crude Oil Revenue: A Case of Selected Crude Oil-Producing African Countries

Abstract

This study investigated the relationship between sustainable development and crude oil revenue (COR) in selected oil-producing African countries from 1992–2017 using the Pooled Mean Group (PMG) estimators on panel autoregressive distributed lag model (ARDL). Sustainable development was measured with the Human Development Index (HDI). This study was significant for Africa to break away from fiscal over-dependence on natural resource revenue, especially crude oil due to its high volatility and to correct porous institutional outlook. The a priori expectation is that crude oil revenue will tank so much that many countries will record negative positions and might not be to meet fiscal demands in the long run if the situation is protracted. Empirical results revealed that there was no long-term relationship between COR and sustainable development. In other words, the results suggest that any changes to COR have a potential negative effect on sustainable development in the selected countries. This implies over-reliance on COR will impact the economies negatively in the long run. This finding, therefore, requires an immediate fiscal intervention on spending on sustainable development drivers such as education, health, agriculture cum adoption diversification policy, and veritable supply-side policies that could avert the possibility of these negative effects and to correct traits of ineffective public institution. The absence of such policy interventions in these countries seems to be related to ineffective public institution and bad governance, culminating from poor, ineffective, and inefficient implementation.

Crude Oil Resources, Tax Revenue and Sustainable Social Development in Nigeria

“…We associate this outcome with the overall crash in global oil prices, fraud and maladministration of public resources. However, this result also corroborates the study of Ologunde et al (2020) which suggests that, oil-producing African countries should limit their reliance on crude oil revenue to avoid long term economic impediments. Exchange and inflation rates impacts on social development were significant and negative.…”

“…Therefore, HO 1 is accepted while the study declines the alternate submission. The result confirms the findings of (Ologunde et al, 2020) but conflicts with the findings of (Hassan and Abdullah, 2015). Conversely, the t-statistic of tax revenue (TXRV) is 4.686 with a P = 0.00 <0.05.…”

“…From the finding, oil price fluctuations had a significant negative impression on sectoral returns. Ologunde et al (2020) examined the relationship between sustainable development and crude oil revenue in selected oil-producing African countries from 1992 to 2017. The study used pooled mean group estimator and panel autoregressive distributed lag model.…”

Extraction path and sustainability

“…Indeed, there are policy-oriented studies (e.g. Ologunde et al, 2020) that refer to (i) as to a sufficient condition for sustainability even without (ii).…”

Spatio-Temporal Differentiation and Driving Mechanism of the “Resource Curse” of the Cultivated Land in Main Agricultural Production Regions: A Case Study of Jianghan Plain, Central China

“…This issue is one of the reasons that this study focused on the relationship between the abundance of cultivated land resources and economic growth. Previous research on "resource curse" has generally focused on traditional consumption resources [14], such as gold [15,16], coal [17,18], and oil [19,20]. Thus, whether a relationship exists between arable land resources (as a non-traditional consumption resource) and economic growth is also worth exploring.…”