Revisiting the Curse: Resource Rent and Economic Growth of Sub-Sahara African Countries

Shu Yang, Elyas Abdulahi, Muhammad Afaq Haider and Mohammed Asif Khan
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Shu Yang: RM 527, School of Economics, Huazhong University of Science and Technology, China
Elyas Abdulahi: RM 527, School of Economics, Huazhong University of Science and Technology, China
Muhammad Afaq Haider: School of Economics, Bejing University of Science, China
Mohammed Asif Khan: RM 527, School of Economics, Huazhong University of Science and Technology, China

International Journal of Economics and Financial Issues, 2019, vol. 9, issue 1, 121-130

Abstract: This paper empirically verifies the drivers of economic growth of resource abundant Sub Sahara African countries (SSA) and examines the extent to which they are typical or unique to the resource curse hypothesis. To this end, using an econometric model of Driscoll-Kraay an assessment is made on a sample of 22 resource-rich Sub-Saharan African countries over the period 1998 2016. The result contradicts the argument of the resource curse due to a positive and significant relationship between resource rent, institutional quality, and economic growth. Nevertheless, the study provides evidence of the curse through the exchange rate, foreign debt, and education. The results are also robust under alternative econometrics estimation model of IV-2SLS and GMM-System.

Keywords: resource curse; resource rent; sluggish economic growth (search for similar items in EconPapers)
JEL-codes: Q (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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