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Natural resource rents in developing countries: Is the positive influence on the fragilities real?

Bruno Emmanuel Ongo Nkoa, Jacques Simon Song and Brice Minkoue Bikoula

Resources Policy, 2024, vol. 89, issue C

Abstract: Natural resource rents continue to expend an extremely fruitful literature. In this article, we examine their consequences on the observed fragilities in developing countries (DC's). Thus, starting from the different dimensions of fragility (economic, social, political, security, environmental), we specify and estimate a linear model by using a cross-sectional data on the sample of 91 countries based on an average data over the period from 2010 to 2019. By using econometric technique based on the two-stage least squares (2SLS), our results show that resource rents increase global fragility in developing countries, as well as economic, political, social and security fragilities. Controlled by historical and fractionalization variables our results remain stable and robust. We suggest responsible, transparent and inclusive management of these resources. Governments, companies and international organizations must work together to promote good governance, transparency and accountability in the exploitation of natural resources in developing countries.

Keywords: Developing countries; Fragility; Resource rents; 2SLS (search for similar items in EconPapers)
JEL-codes: F24 F35 Q34 R21 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:89:y:2024:i:c:s0301420723012527

DOI: 10.1016/j.resourpol.2023.104541

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