Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/303209 
Year of Publication: 
2024
Series/Report no.: 
AGDI Working Paper No. WP/24/027
Publisher: 
African Governance and Development Institute (AGDI), Yaoundé
Abstract: 
This study investigates how governance and infrastructure moderate the effect of natural resource rents on economic growth using a sample of 110 countries, including 47 African countries from 2000 to 2018. The empirical evidence is based on Panel Smooth Transition Regressions(PSTR). The following findings are established. First, the nexus between economic growth and natural resources is not linear and the underlying non-linearity is contingent on existing infrastructural and governance levels. Second, evidence of a "natural resource curse" is apparent in countries with extremely low levels of governance and infrastructural development. Third, the favorable effect of natural resources on economic growth requires a governance threshold of -1.210 and an infrastructure threshold of 2.583, indicating that countries with governance and infrastructure levels higher than these values tend to benefit much more from the wealth of natural resources. With high levels of the transition variables (governance and infrastructure), the established thresholds are low and situated between the 5 thand the 10th percentiles. Countries identified below the established thresholds are mainly from Africa. Policy implications are discussed with specific emphasis on African countries.
Subjects: 
Natural Resources
Economic Growth
Governance
Infrastructure
Threshold
Panel Smooth Transition Regressions
Generalised Method of Moments
Panel
JEL: 
H10
Q20
Q30
O11
O55
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.