Does dichotomy between resource dependence and resource abundance matters for resource curse hypothesis? New evidence from quantiles via moments

Nasiru Inuwa, Sagir Adamu, Yusuf Hamza and Mohammed Bello Sani

Resources Policy, 2023, vol. 81, issue C

Abstract: The aim of this study is to assess the disaggregate effect of natural resources on economic growth in WAIFEM member countries during the period 1990–2020. The study employed the recently developed quantiles regression via moments and documented that resource dependence retarded economic growth of the studied countries in all quantiles. But, the study displayed an insignificant effect of natural resource abundance on economic growth in all the quantiles. However, financial development and institutional quality have been found to have stimulated economic growth in all the quantiles. Therefore, it is important for policy makers in the WAIFEM member countries to advise the government to utilize the rents generated from the natural resources effectively and efficiently in order to develop other sectors necessary for development, just like the policy followed during take-off stage of development as stipulated in economic growth theories. Also, financial development has been found to have stimulated economic growth; the study suggests that governments of WAIFEM member countries should focus on formulating policies capable of providing an enabling environment that allows the private sector to thrive. This can be achieved through the use of rents in the form of capital to support sectoral development with particular attention to the manufacturing sector.

Keywords: Natural resource abundance; Natural resource dependence; Economic growth; Quantiles regression; WAIFEM (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:81:y:2023:i:c:s030142072300003x

DOI: 10.1016/j.resourpol.2023.103295

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