Natural Resources, Institutional Quality, and Economic Growth: an African Tale

  • Boniface Ngah EpoEmail author
  • Dief Reagen Nochi Faha
Original Article


This study investigates the role of institutions in the relationship between natural resources and economic growth using panel data from 44 African countries over the period 1996–2016. We use natural resource rents as a percentage of gross domestic product (GDP) and the share of ores and metals exports in total merchandise exports as variables for natural resources. To check for endogeneity, heterogeneity, and nonlinearity, we undertake cross-sectional instrumental variable analysis, system dynamic panel-data instrumental variable regression, and panel smooth transition regression. The relationship between natural resources and economic growth varies for indicators of institutional quality and the measure for natural resources.


Natural resources Economic growth Institutions Panel threshold Africa 


Cette étude examine le rôle des institutions dans la relation entre ressources naturelles et croissance économique en utilisant des données de panel de 44 pays africains pour la période 1996–2016. Nous utilisons les bénéfices tirés des ressources naturelles en pourcentage du PIB et la part des exportations de minerais et de métaux dans les exportations totales de marchandises en tant que variables pour les ressources naturelles. Pour vérifier l’endogénéité, l’hétérogénéité et la non-linéarité, nous entreprenons une analyse transversale des variables instrumentales, une régression de variable instrumentale dynamique et systémique avec données de panel et une régression à transition progressive. La relation entre les ressources naturelles et la croissance économique varie selon les indicateurs de la qualité des institutions et la mesure des ressources naturelles.



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Copyright information

© European Association of Development Research and Training Institutes (EADI) 2019

Authors and Affiliations

  1. 1.Faculty of Economics and ManagementUniversity of Yaoundé IISoaCameroon

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