Natural resource rents and economic growth in Africa: The role of transmission channels

Abstract

The aim of this article is to assess the effects of natural resource rents on economic growth in Africa, based on various transmission channels such as: trade openness, foreign direct investment, institutional quality and human capital. Based on a sample of 44 African economies over the period 2002-2022, we used the Generalized Method of Moments (GMM) developed by (Arellano and Bond, 1991). As main results, natural resource rents do not have a significant direct influence on economic growth in Africa, the relationship between natural resource rents and economic growth is conditioned by trade openness, human capital (education and health), corruption control, political stability and regulatory quality.

Key words: Natural resource rents, Africa, economic growth, transmission channels.

Classification JEL : O22

Paper type: Empirical Research