Natural resources curse: A reality in Africa

• Published in: Resources policy Vol. 63; p. 101406
• Main Author: Henri, Pr Atangana Ondoa
• Format: Journal Article
• Language: English
• Published: Kidlington Elsevier Ltd 01.10.2019; Elsevier Science Ltd
• Subjects: Accountability; Accumulation; Africa; Bioaccumulation; Capital formation; Corruption; Curse and resource; Economic indicators; Economic models; GDP; Governance; Gross Domestic Product; Human capital; Justice; Low level; Natural; Natural resources; Political factors; Political risk; Rents; Rule of law; Volatility; Africa; Curse and resource; Natural; Africa
• ISSN: 0301-4207; 1873-7641
• DOI: 10.1016/j.resourpol.2019.101406

The objective of this study is to identify the institutional and economic indicators that are more negatively affected by natural resource rents in Africa. For this purpose, it used the two-stage least squares (2SLS) and data of the World bank (WDI and WGI) for the period 1992–2016.The results show that the most institutional problems caused by natural resources rents are by order: corruption; problem of rule of law or justice; inefficient public administrations; bad regulation; lack of voice and accountability; political instability. Natural resources rents also cause volatility of GDP per capita, leading to low level of physical and human capital accumulation. For these reasons, African countries should promote good governance and diversify their economies. •In this study I identify the institutional and econocomic indicators that are more negatively affected by natural resources rents in Africa.•I used the two-stage least squares (2SLS) and data of World bank (WDI and WGI) for the period 1992-2016.•The results show that the most institunal problems caused by natural resources rents are by order: corruption; problem of rule of law or justice; bad quality of public services; lack of policies and regulations that permit and promote private sector development (problem of regulation); wrong process of selecting government officials, as well as lack of freedom of expression, association, and amedia (problem of voice and accountability); political instability.•Natural ressources rents also cause volatility of GDP per capita, lead to law level of physical and human capital accumulation.•For these reasons, African countries should promote good governance and diversify thier economies.