Natural Resource Abundance, Institutions and Economic Growth in Africa

African J. Economic and Sustainable Development, Vol. 4, No. 1, 2015

15 Pages Posted: 20 Apr 2015

See all articles by Mutiu Abimbola Oyinlola

Mutiu Abimbola Oyinlola

University of Ibadan - Department of Economics

Oluwatosin Ademola Adeniyi

University of Ibadan, Department of Economics, Students

Ibrahim Raheem

University of Ibadan - Department of Economics

Date Written: 2015

Abstract

The study analysed the effect of institution on resource curse abundance-economic growth nexus using the system generalised method of moments. The empirical results refute the resource curse hypothesis in Africa. In addition, institutions have dampening effect on the nexus. This stems from the fact that the institutional development level of most African countries is weak. The study also found out that the resource curse hypothesis is not peculiar to oil wealth as indicated in the literature. Lastly, our results do not support the rentier effect as a possible channel of the hypothesis.

Keywords: natural resources; institutional quality; growth; rentier effect; resource curse hypothesis; Africa.

JEL Classification: 041

Suggested Citation

Oyinlola, Mutiu Abimbola and Adeniyi, Oluwatosin Ademola and Raheem, Ibrahim, Natural Resource Abundance, Institutions and Economic Growth in Africa (2015). African J. Economic and Sustainable Development, Vol. 4, No. 1, 2015, Available at SSRN: https://ssrn.com/abstract=2596522

Mutiu Abimbola Oyinlola

University of Ibadan - Department of Economics ( email )

Department of Economics
Ibadan, OK Oyo State 900001
Nigeria

Oluwatosin Ademola Adeniyi

University of Ibadan, Department of Economics, Students

Department of Economics
University of Ibadan
Ibadan, Oyo 200284
Nigeria

Ibrahim Raheem (Contact Author)

University of Ibadan - Department of Economics ( email )

Department of Economics
Ibadan, OK Oyo State 900001
Nigeria

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